More than €250 million has been paid out by insurers to hospitality businesses that were forced to shut down during COVID.
Newstalk has learned that more than 6,000 pubs, cafés and restaurants have now received insurance compensation for lost revenue during the Government-ordered lockdown in March 2020.
The figures, obtained from the Central Bank, show that 6,113 businesses have now received some €255 million in payouts.
Initially, some in the insurance industry had resisted paying out on claims for business stoppages - citing the unforeseen nature of a global pandemic.
One of the largest insurers against business interruption risks - FBD - had initially refused to pay out on claims despite there being a clause in their standard contracts stating that shutdowns of premises ordered by the Government would be covered.
In an early 2021 test case, the High Court ruled that claims by four publicans against FBD were legitimate and that the cover should be paid out.
FBD has told Newstalk that 80% of claims from impacted policy holders have now been settled with the insurer – with payments reaching €46.8m up to the start of July.
“Following the test case, FBD has engaged extensively with impacted policyholders,” the company said.
“With, on average, seven letters, three phone calls and seven emails sent to each policyholder.
“FBD provides the Central bank of Ireland with regular updates and has shared its plans to close out the claims.”
Meanwhile, the Central Bank told Newstalk that it would “continue to monitor the outcome of any remaining test cases in the Courts or Financial Services and Pensions Ombudsman complaints and will act if any of these judgments have a wider beneficial impact for similarly impacted groups of customers”.
The Vintners Federation of Ireland (VFI), which represents many pub owners, described the claims process as arduous for many publicans.
“The significant financial strain caused by the pandemic required swift and decisive action from insurance providers and while the majority of claims are now settled, the process was often fraught with delays and complications,” it said.
