General Insurance Article - Insurers likely to pay GBP 20m after Liverpool car park fire

 Payments have already been made to some of the hundreds of people who lost their vehicles in the blaze on New Year’s Eve, with a number of insurers bringing in extra staff to ensure claims are dealt with as swiftly as possible. Emergency claims lines were open on New Year’s Day.

 As well as getting the money to replace their vehicles, customers have also been making claims for the value of belongings which were inside them. Depending on the cover they had, some people will also be able to get money back for other transport costs.

 The motor insurance industry paid out £33 million in claims every single day in 2016 but it is highly unusual to have so many vehicles destroyed at the same time at a single location.

 Rob Cummings, Head of Motor and Liability at the ABI, said: Insurance exists for just this sort of event, and insurers were working hard over the bank holiday to get on with processing people’s claims as quickly as possible. Customers affected should be reassured that insurers are expecting to pay out around £20 million to help get them back on the road.

 The insurance industry pays out tens of millions of pounds every day, so while this is a very unusual event it is well within the bounds of what firms expect to deal with.

 Anyone who has lost a vehicle in the fire and has not yet made a claim is advised to contact their insurer as soon as possible.

 The settlement offered to customers will take into account the cost of replacing the vehicle with one of the same age and condition, minus whatever excess applies to the policy.