Pub owners to receive Covid compensation from insurance company after landmark ruling
In a landmark judgment, Mr Justice Denis McDonald ruled the policy sold by insurers FBD covered losses caused by having to close during the pandemic
FBD s head office on the Naas Road, Dublin (Image: Colin Keegan/Collins)
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The company also said it was committed to quickly paying claims to public house insurance policyholders and will issue interim payments in the short-term while awaiting final clarity on the quantum of losses.
However, insurance industry sources indicated the company could have limited its exposure by negotiating settlements with customers early in the pandemic instead of fighting them in court.
FBD shares were up 3.67pc shortly after the company issued its statement.
The Commercial Court has listed a hearing for February 17 to determine how much should be covered by FBD s policies based on how long pubs were closed and what periods the contracts cover.
Ireland Pubs: Restaurants and boozers will be open by end of May
The news comes as it was announced we could get 2.2million doses of the new Johnson & Johnson vaccine, while the AstraZeneca jab has been approved for all ages
Updated
Pint being pulled in a pub (stock) (Image: Amie Johnson/Unsplash)
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Adrian Cummins, CEO of the Restaurants Association of Ireland (RAI) said that if the sale of takeaway drinks for home consumption was brought forward earlier in the day, and apply to restaurants who are currently operating on a takeaway basis, it would have a “massive” impact on those businesses.
“It would have a huge effect on us. We would feel we’re taking the brunt of this for the sins of others.”
He said that there needs to be a distinction made between alcohol being purchased for consumption at home and in public.
“It’ll have an effect on our industry if your takeaway for home consumption is affected. We need to split this into home consumption and consumption on the streets,” Mr Cummins said.
THE return of Level 5 restrictions, which will force gastropubs and restaurants to close from the afternoon of December 24, has been described as “a body blow” to the sector. Fears are growing for the future viability of the hospitality industry in Clare, with a warning that many businesses will face closure in the New Year, unless government supports are stepped up.
Reaction in Clare to Tuesday’s announcement that restrictions are to be re-imposed from Christmas Eve, has ranged from resignation in the face of a third wave of Covid-19 to anger at the perceived delay in breaking the news.
“This is very disappointing and word got out through a series of Chinese whispers,” said Clare Chair of the Vintners Federation of Ireland (VFI) Darragh McAllister. “The way that the details were leaked [last weekend] is shoddy, amateur and no way to run a country. There are huge problems now for the gastropubs in terms of all of the stock they’ve bought in for the season. The breweri