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Law360, London (April 14, 2020, 12:02 PM BST) -- Irish insurers have said they will give consumers and businesses the benefit of the doubt during the COVID-19 outbreak, as the Central Bank of Ireland tells the sector to treat their customers fairly.
Insurance Ireland, a trade group that represents the sector, has written to Minister for Finance Paschal Donohue, outlining how the industry plans to protect consumers and businesses as they are buffeted by the economic impact of the coronavirus crisis, which has now infected 1.8 million people worldwide.
"Our members are working hard to help customers, and are committed to doing the best they can for customers under very difficult and unprecedented circumstances," Gerry Hassett, interim chief executive of Insurance Ireland, said on Friday. "Insurers have agreed important pledges on home, motor and business insurance to help and support customers."
The Central Bank of Ireland instructed insurers in March to prioritize consumers during the pandemic.
The central bank stepped in after an Irish pressure group criticized a refusal by insurance companies to pay out on claims for losses caused by business interruption over the coronavirus outbreak. The Alliance for Insurance Reform urged the country's central bank to intervene
The measures announced Friday for business insurance customers include reductions in premiums and 28-day extensions on payment deadlines. Insurers will also allow commercial buildings that are empty due because people are working remotely to maintain their cover during the crisis.
Business customers will also be able to request changes in property insurance to accommodate their circumstances during the outbreak.
Personal customers will also get a 28-day renewal grace period. They will not have to pay cancellation fees or missed debit fees and will have their credit facilities with brokers extended, Insurance Ireland said.
Personal home cover will be extended to cover home working arrangements during the crisis.
Insurance Ireland also said that insurers have made a commitment to dealing with any customers suffering from financial distress in a fair and flexible manner.
The body said that most insurance for business interruption, which has been the subject of concern for insurance customers across Europe, generally does not support a claim for losses connected to COVID-19.
But it said that "insurers are very mindful of their commitments to the customer and will adjudicate each claim fairly and consistently in line with the policy terms and conditions."
Insurers will favor the consumer in cases where the wording of business interruption insurance is unclear, Insurance Ireland said. They will also recognize any government advice about COVID-19 as a "government direction" for the purposes of business insurance.
--Editing by Ed Harris.
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