Aviva subsidiary case means hopes rise for movement on compensation for delayed claims payments as judge rules that Section 13A claim should be heard at trial

Aviva subsidiary case means hopes rise for movement on compensation for delayed claims payments as judge rules that Section 13A claim should be heard at trial

Anyone pursuing a major or complex insurance claim will be only too aware of the misery of delayed payouts. This issue has become so widespread and pernicious it was recognised by statute in the Enterprise Act 2016 which made late payments actionable under the law. Since then two late payment cases have been placed in front of the courts, neither of which did very much to give insurers the hurry up.

Happily, the courts can now have another go at policing this issue. In Probitas 1492 v Pro 2 Care Limited the parties have been battling it out over two claims relating to an escape of water (EOW) at a care home under development in West Yorkshire. Pro 2 Care put in the claim for the water damage shortly after the leak took place back in December 2022. While some monies were paid on an interim basis it took Aviva subsidiary, Probitas, 19 months to settle the claim in full. Cue the Section 13A delayed payment claim. At the same time Pro 2 Care was also pursuing a business interruption claim for alleged losses caused by the EOW damage in the development of its care home.

All this came to court at a very early stage when Probitas asked the court to rule on the business interruption claim and to give summary judgment on Pro 2 Care’s delayed payment claim. The insurer, represented by Browne Jacobson LLP, prevailed on the first leg of the dispute, getting the business interruption claim thrown out. However, the judge said the delayed payment claim should go to a full trial.

Given the relatively simple and commonplace nature of Pro 2 Care’s property claim, this has to be good news. We need more case law on how Section 13A of the Enterprise Act should be implemented. And insurers need to get a move on when it comes to paying claims.

Mactavish’s claims resolution practice, led by former Law Commissioner David Hertzell who pioneered the development of the Insurance Act 2015, delivers a truly distinctive service to clients ranging from SMEs to major blue-chip companies – including some of the most complex and high-stakes cases in the UK market. Backed by deep technical expertise, a fully independent business model, and a global network of top-tier legal, forensic, and technical specialists, we leave no stone unturned in pursuing the best possible outcome for your claim. From strategic claim presentation through to legal action and media handling, Mactavish provides a uniquely comprehensive perspective – combining commercial, legal, media, and technical insight to apply pressure on insurers to deliver the right outcome in ways that law firms simply cannot.

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