Aviva refused payment over claim company director was an undischarged bankrupt
Aviva is facing a lawsuit after rejecting a fire damage claim because a man was bankrupt.
Toto Worldwide Properties Ltd is claiming against Aviva, after their premises, while under the coverage of an Aviva buildings insurance policy worth up to £1.85m, were severely damaged by a fire.
The fire happened on 11 October 2016 and is believed to have been caused by vandals, according to high court documents from Toto’s solicitors.
However, Aviva refused to pay out on the damage.
The documents allege that Aviva’s Keith Conway sent a letter to Toto’s UK consultant Khalid Chaudhry on 8 May 2017 explaining the decision.
The reasons stated were that Chaudhry was an undischarged bankrupt, having been declared bankrupt on 15 October 2001; had continued to act as a company director despite being an undischarged bankrupt; and that he was a director of Diplomat Extrusions Limited, a company that went into liquidation on 26 April 2010.
The claimants are pursuing a claim against Aviva by arguing Chaudhry was a self-employed consultant and not an officer, and that therefore his background had nothing to do with the claimant’s claim for an indemnity under the policy.
Aviva is yet to submit their defence.