Insurance Corporation

COVID-19 FCA test case FAQ [Updated 24/11/20]

Further to our previous update following the initial judgment in the FCA test case, a number of the participants in the case have now decided to seek leave to appeal to the Supreme Court. The intention for this is to obtain further clarity for both insurers and policyholders, and permission for this has now been given.

This means that the Supreme Court will now review the judgment and determine to what extent it agrees with it. Any decision of the Supreme Court will bring the process to a conclusion and be binding on all parties.

You can read the original judgment here or visit the FCA’s business interruption hub for more information.

While the appeal takes place, the position on any claim will remain unchanged by the initial judgment. In the meantime, as your policy is one that could be affected by the judgment and subsequent appeal, please retain any key documents that we may require in case there is a need to revisit your claim and calculate further payments as a result.

Please be assured that should the final outcome of this case change the position on your claim and result in a change to our current claim handling process, we will contact you further after the final outcome is known and make any additional payments that may be due as quickly as we can at that stage.


On Tuesday 15th September 2020, the court posted its judgment in relation to the test case on business interruption claims led by the FCA on behalf of policyholders. RSA was a party to these proceedings, and the judgment, as expected, is very lengthy and complex. We alongside other parties to the case are now working through the impact at a policy wording and customer level.

Scott Egan, CEO of RSA UK and International, said:

 “Throughout the pandemic RSA has been settling claims from both commercial and personal lines customers, as well as participating in industry initiatives to support communities around the UK. We’re committed to continuing to play our part to help individuals and businesses manage and recover from the impact of Covid-19.”

“The test case set out to consider how a number of business interruption policy wordings should respond to Covid-19, and today’s judgment is an important milestone for customers and for insurers. It is also a complex judgment, and it will take some time for all parties involved to review it. We are now working through the judgment to determine next steps, and we will continue to work with our partners to communicate fully with our policyholders throughout the coming weeks, whether they have currently made a claim with us or not.”


What happens next?

An initial hearing to determine whether the ‘leapfrog’ certificate would be granted took place on 2 October. Permission was granted, and parties will now prepare applications to the Supreme Court to request that they hear the case. If they agree, a date will then be agreed for the appeal.

ICCI is committed to paying claims as quickly as possible as and when legal processes relevant to them are concluded, including making interim payments.

We will write to policyholders affected by the case to keep them informed of developments, through your Broker. In the meantime, policyholders do not need to take any further action.

Will ICCI now be paying claims?

Until any appeals are complete, the legal process is ongoing, so our position on outstanding claims and cover available under ICCI policies does not change. We are committed to continuing to keep our customers informed on the status of their individual claims, and processing them as well as interim payments as quickly as possible once a final legal position is reached.

Do customers need to resubmit claims?

No, if you have already sent us a claim we will review it once the relevant legal processes are concluded. We will keep you updated on the status of your claim throughout.

If a customer has not made a claim yet, what information do they need to send Insurance Corporation to make a claim now?

If a customer has already made a claim then you do not need to do anything further at this stage and we will keep them updated as the next steps in the legal process progress. If they have not made a claim please support them to do so through this email address. You can also use this address if you have any other queries.


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