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By Carolyn Cohn
LONDON, Dec 15 (Reuters) - There will be no judgment in an
appeal over business interruption insurance this year, Britain's
markets watchdog said on Tuesday, dashing hopes of an early
outcome in a case that could affect billions of pounds in
claims.
Britain's Financial Conduct Authority has been told by the
UK's Supreme Court that no judgment will be handed down before
January 2021, the regulator said on its web page dedicated to
the case.
The appeal by the FCA and six insurers in a test case over
business interruption payments as a result of the COVID-19
pandemic is being closely watched at home and abroad.
Thousands of small firms in Britain, from holiday cottages
to restaurants and night clubs, had to shut down or restrict
trading as a result of the pandemic and say they face ruin after
insurers rejected claims for business interruption cover.
The FCA said in September that the lower court found in
favour of policyholders' arguments in the majority of key
issues.
Both sides appealed some aspects of the original judgment in
a four-day hearing last month.
The case revolves around whether 21 policy wordings,
affecting potentially 700 types of policies, 60 insurers,
370,000 policyholders and billions of pounds in claims, should
cover disruption caused by the virus.
The wordings cover business interruption when insured
premises cannot be accessed because of public authority
restrictions, in the event of a notifiable disease within a
specified radius and hybrid wordings.
(Reporting by Carolyn Cohn; Editing by Marc Jones and Catherine
Evans)
Hiscox (HSX)