Huge Norwegian Forest Cat the size of a large Maine Coon

This is an example of what is reported The Times today on the subject of insurance companies not paying out compensation to businesses who have lost income due to the coronavirus pandemic. Insurance companies argue that should not be expected to pay compensation when the UK government has paid out grants and loans under government schemes.
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Norwegian Forest cat kittens. Photo: Helmi Flick. |
However, the government has ordered insurers to end what they describe as a "shameful" practice in using the government's emergency support both in loans and grants (depending upon the size and nature of the business) to offset insurance payouts to businesses.
Insurance companies have been very reluctant to pay out compensation under policies for the simple reason, as I understand it, that if they paid all the claims it would jeopardise the existence of those businesses such is the severity of the situation facing small businesses in the UK during lockdown.
They are therefore protecting their balance sheet in making deductions from business interruption insurance claims. John Glen, economic secretary to the Treasury, in a letter to Huw Evans, director-general of the Association of British Insurers, made it clear that "grant funds intended to provide emergency support are not to be deducted from insurance claims".
If the insurance companies were making deductions it would be tantamount to "taxpayer funds... being channelled into savings for insurers, rather than supporting businesses to ride out [the crisis]. The Norwegian Forest cat breeder had received a one-off cash grant of £10,000 from the local council under the government's Small Business Grant Fund. Their claim under an insurance policy was refused as stated in the title.
A court case had been started by the FCA and they say that the judgement found in their favour which raises hopes for hundreds of thousands of businesses to receive pay outs under their policies. However, many businesses remain in the dark over what the court ruling means. They may have to appeal.
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