* Top insurers including Hiscox face policyholder action
* Policyholders can also go to Financial Ombudsman
* Lloyd's of London chairman hopes for co-ordination
(Adds quotes, FCA, FOS, Lloyd's of London)
By Carolyn Cohn and Kirstin Ridley
LONDON, May 7 (Reuters) - Britain's Financial Conduct
Authority (FCA) aims to get business interruption insurance
policies examined by a court as soon as July, a member of a
policyholder action group said on Thursday.
The Hiscox Action Group, which is seeking to sue Hiscox
over allegations that legitimate business interruption
(BI) claims have been rejected during the coronavirus pandemic,
held a discussion with the FCA this week, Daniel Duckett said.
Duckett, who is a member of the 450-strong action group's
steering committee, told Reuters it was the FCA's "ambition" to
bring the case before the court in July. "That's 16 weeks from
the start of the lockdown, which really concerns us," he added.
The FCA, which said last week it would seek clarity from the
courts about whether the wording of some BI insurance policies
should provide cover as a result of the pandemic, had no
immediate comment on the timing of the case.
It has not named the insurers whose policies it is seeking
to put before the court.
Hiscox and other insurers have said they understand these
are difficult times for shuttered businesses and that they are
paying valid claims fairly and quickly.
The late March government lockdown, designed to slow the
spread of the deadly coronavirus, has forced many companies in
Britain to temporarily suspend operations and furlough staff in
an effort to survive. Many had also banked on BI payouts and a
number of insurers have been threatened with legal action.
The dispute hinges on whether the lockdown and the
coronavirus are enough to trigger a clause in business
interruption insurance, designed for insured premises that
cannot be used because of restrictions imposed by a public
authority and in the event of a notifiable disease or infection.
Top insurers such as Allianz, AXA, RSA
, QBE and Zurich also face potential
multi-million pound lawsuits from British businesses such as
pubs, hotels, restaurants and leisure groups that allege
legitimate business interruption claims have been rejected.
QBE said last week it had received a letter from the FCA.
RSA has not been asked to take part in the FCA's court
request as of Thursday a spokesman said.
Small businesses in dispute with their insurers can also
turn to the Financial Ombudsman Services (FOS), a body set up to
settle disputes for claims capped at 355,000 pounds ($437,000)
between consumers and businesses providing financial services.
The FOS said it would progress those cases it could, but
would also consider what the FCA's decision to obtain a court
declaration would mean for its work.
Lloyd's of London chairman Bruce Carnegie-Brown told an
online conference on Thursday that he would like to see
coordination between regulators, ensuring that the ombudsman
would accept the court findings.
($1 = 0.8127 pounds)
(Reporting by Carolyn Cohn and Kirstin Ridley;
Editing by Alexander Smith)
