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Law360, London (October 13, 2020, 1:49 PM BST) -- Insurance companies have given policyholders affected by the COVID-19 crisis an extra two months of flexibility with their home and motor policies, the Association of British Insurers said on Tuesday.
Customers who usually work from the office but now operate from home because of the pandemic will not be obliged to update their home insurance cover until the end of December, an extension from the earlier deadline of Oct. 31 set by the ABI.
And policyholders who have to drive to work because of the coronavirus outbreak will not need to contact their motor insurance provider until the end of the year about updating or extending their cover. The same concession is being granted to people who use their cars for voluntary purposes — such as picking up groceries — as to those affected by the virus, the ABI said.
"The extension of these temporary pledges underlines the commitment of insurers to helping customers through these continued challenging times," said Laura Hughes, the association's manager for general insurance.
The industry group believes the measures could give "significant" assistance. It said 17 million people have home insurance policies, and 27 million are motor insurance customers.
The next review of the home and motor insurance sector is expected to take place before the end of December, according to the ABI.
Regulators and businesses have unveiled measures they say will help customers who face difficulties during the pandemic.
The Financial Conduct Authority said in August that it was extending temporary measures to help people struggling to pay their insurance premiums. It has published guidance for lenders to help credit card borrowers who are facing challenges because of the pandemic.
--Additional reporting by Martin Croucher and Najiyya Budaly. Editing by Ed Harris.
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