The Central Bank has warned insurance companies that the government's advice to close businesses to prevent the spread of Covid-19 should be treated as a direction. It follows fears that thousands of pubs, restaurants and businesses who shut their doors to comply with the Government's request could have their insurance claims rejected because they closed voluntarily. However, in a letter to the CEO's of insurance firms, the Central Bank said that while most insurance policies are clear, if there is a doubt about the meaning of a term, they must interpret the policy in favour of the consumer. "Firms must ensure that claims are appropriately assessed and where there is insurance cover in place that claims are accepted and paid promptly." We expect firms to provide reasonable arrangements to support such customers in their dealings with firms at this difficult time.’’

Source: Irish Examiner March 27, 2020 18:22 UTC