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UK insurers under pressure to refund coronavirus-hit policies

FILE PHOTO: People stand in a queue to get tested for COVID-19 at a walk-through centre amid the coronavirus disease (COVID-19) outbreak in Liverpool Britain, October 6, 2020. REUTERS/Phil Noble

LONDON (Reuters) - Britain’s insurers should review by December whether customers can be refunded for policies that do not provide benefits during the coronavirus restrictions, the Financial Conduct Authority said on Friday.

The FCA called on insurers in June to check for policies that may no longer provide full or any benefits due to curbs on businesses or people’s movements.

This could include public liability insurance taken out by bars, hairdressers and restaurants, some of which remain closed, or car insurance during times of reduced usage of vehicles as people work from home.

“Firms should complete their coronavirus related review of product lines and decide what action to take by 3 December 2020,” the FCA said in a statement.

“We said we would review this guidance and revise it if appropriate. We have now done this and do not propose to update this guidance.”

Reporting by Huw Jones; Editing by Tomasz Janowski

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