In the latest update to the ongoing case against Hiscox Insurance, Mischon de Reya (Mishcon) has today formally commenced its arbitration claim against the insurer for non-payment of business interruption insurance. Mishcon, which represents the Hiscox Action Group (HAG), has today written to Hiscox, triggering the arbitration clause in nearly 350 policyholders’ contracts and seeking payment of almost £40 million.
The number of contracts involved and of payment sought is expected to grow significantly as more of the 600 HAG members signed up to the action and their losses are added to this total. Additional claims are also expected to be brought by policyholders under the Insurance Act. Mishcon’s letter proposes a former Court of Appeal Judge as the sole arbitrator of the proceedings and Richard Leedham, the Mishcon partner dealing with this action, said that a clear process has been set out for this matter to be dealt with quickly and easily.
Leedham said: “We were only appointed two months ago and have moved incredibly swiftly to get to this point. We know that many of our claimants are small businesses who desperately need this money to survive and we are pushing as hard as we can to help them.”
HAG also noted that it has been informed that the FCA action being taken against various insurers, including Hiscox, will not hinder the arbitration process. Mark Killick, the founder of HAG, said that today’s launch of the expedited arbitration claim marks an important milestone in the action group’s campaign to force Hiscox to do the right thing and honour its obligations.
“It will be interesting,” he said, “to see if Hiscox is now willing to work with us to swiftly resolve this issue or if it seeks to delay things even further.”
Discussing this update, a Hiscox spokesperson said: “We understand these are difficult times for businesses and we are paying claims that are covered by the policies we issue fairly and quickly. We welcome all proposals to expedite resolution of any dispute, which is why we have agreed to participate in the FCA’s expedited court-based process, and we will work with all parties to achieve this. We can confirm that we have received a letter on behalf of a group of policyholders with UK property insurance policies. We shall carefully consider it and respond accordingly.”
