Powers of deduction: Why insurers are under fire over cuts to payouts

Many insurance companies have been deducting the value of pandemic government supports provided to policyholders from awards, but strenuous opposition to the practice is growing

23rd January, 2022
Powers of deduction: Why insurers are under fire over cuts to payouts
Paschal Donohoe: the Minister for Finance said it was appropriate for him to wait and see what verdict the court came to on the issue of insurers deducting government supports from payouts before deciding on any further action he may take. Picture: Rollingnews.ie

As September 2020 drew to a close, barristers for four publicans and those representing their insurer appeared before the Commercial Court ahead of what would be a landmark legal challenge the following month on FBD’s refusal to compensate businesses for losses stemming from the pandemic.

On an autumnal Thursday morning, Mr Justice Denis McDonald oversaw a discovery hearing during which the court heard senior FBD executives had privately outlined their pessimism that the action...

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