GCC: Late rush of claims expected to be litigated ahead of March limitation period
Source: Middle East Insurance Review | Feb 2023
The last flow of business interruption (BI) claims stemming from COVID-19-related lockdowns in the GCC region can be expected between the start of 2022 and the spring, according to Clyde & Co partner Wayne Jones, who is based in the global legal firm’s Dubai office.
In a blog that is part of Clyde & Co’s ‘Insurance 2023 – the year ahead’ series of market insights, Mr Jones said, “March 2023 signals the third anniversary of the restrictions on the movement of people imposed by most governments in the GCC in response to the COVID-19 pandemic.
“In the wake of those restrictions, a number of hospitality, food and beverage, retail operations and others notified claims for loss of income under business interruption insurance covers that were of their property all-risk insurance policies.”
While many of these notifications have now been resolved, there is a residual number of claims that have not yet been pursued in court, he added. Most GCC jurisdictions have a three-year limitation period in place for claims to be made under insurance policies.
Mr Jones said, “While the limitation period provisions are not necessarily decisive to the issues, we expect that insureds wishing to pursue claims for COVID-19 BI losses under insurance policies will be advised to commence proceedings ahead of the expiry of the three-year limitation period in March 2023. M