Overview of the claim and judgment

As a reminder, Non-Damage Denial of Access (NDDOA) clauses were considered in the FCA’s Test Case back in July 2020. The first instance Court ruled that a clause in respect of government actions in response to a ‘danger or disturbance’ within 1 mile of the insured premises did not cover Covid claims. This was not appealed to the Supreme Court. See more on the FCA Test Case.

After the test case concluded, the Corbin & King restaurant group issued proceedings against AXA Insurance UK plc (AXA) claiming that AXA’s “danger or disturbance” NDDOA wording did cover losses arising from the government restrictions on its business in response to the pandemic. The case went to trial at the end of January 2022 and the judgment handed down on 25 February held that the NDDOA clause in AXA’s policy did in certain circumstances provide cover for losses where access to the insured premises was restricted or hindered due to government action in response to the pandemic. AXA is not appealing this decision and are working through the impact of this judgment on all NDDOA claims.

What to do if you think you now have a valid claim in relation to your NDDOA clause?

If your policy includes the “danger or disturbance” clause as an operative cover and you have previously made a claim, you will be contacted shortly with a letter explaining what you need to do if you wish to pursue your claim.

If your policy includes the “danger or disturbance” clause as an operative cover and you have not previously made a claim but now wish to do so, please email us on biclaims@axa-insurance.co.uk quoting your policy number and stating that you wish to notify a claim. We will then explain what you need to do next.

What are you saying to policyholders who might be affected by this?

All policyholders whose policy includes the “danger or disturbance” clause as an operative cover and who have previously made a claim will receive a letter explaining what they need to do if they wish to pursue their claim.

Please see further information on what we have done following the FCA’s Business Interruption test case.