Following the conclusion of the test case trial, FCA has noted increasing concerns about how insurers are calculating non-damage BI claim payments in situations where they have agreed liability. Specifically, they are making deductions for some types of Government support that claimants have received.
FCA stresses that insurers must handle and assess claims promptly and fairly and in accordance with Principle 6, whenever they have admitted liability.
This means assessing whether it is appropriate to make deductions for some or all type of government support on a case by case basis, taking into account the exact type and nature of the support, how the policyholder has used it and the type of policy and its precise terms. It stresses that even if it is appropriate in principle to make deductions, there is not likely to be any single, uniform approach that would be appropriate.
FCA expects firms to take all this into account and to reflect matters appropriately when communicating with policyholders.