Prince of Wales joins protests over insurer's non-payment of claims
Brokers have this week been forced to explain to angry businesses with thousands of pounds worth of outstanding claims that their insurer, jordan-based Arab German Insurance (AGI), is refusing to pay their claims.
The Prince of Wales, a former MP for Cornwall and Biba have also become embroiled in the controversy.
They are urging the government to get involved because many of the businesses left out of pocket are premises ruined by floods in Boscastle a year ago this week.
AGI has offered no reason for refusing to pay the claims and is even understood to still be writing business outside of the UK.
According to one newspaper, the Jordan Times, AGI revealed a 277% growth in pre-tax profits for the first half of the year earlier this month.
Because AGI falls outside the jurisdiction of the FSA, policyholders have been left with no regulatory recourse to force the company to pay their claims.
Insurance Times has learned that AGI has written to its claims handler Adjusting Associates, advising it to write to claimants with a settlement offer of between just 30% and 50% of what they are owed.
Businesses with claims of below £1,000 have been advised they will receive nothing, as have those firms those who refuse to accept the offer.
The Prince of Wales's office and working peer Paul Tyler have written to Biba and the government urging action in the case of Morgans restaurant, which sustained £200,000 worth of damage in the Boscastle floods, and falls under the Prince of Wales's Duchy of Cornwall.
Thousands of guest-houses, fish and chip shops, restaurants and small commercial premises throughout the UK have also been affected.
AGI is refusing to field calls from policyholders, brokers and even the appointed loss adjuster.