PARIS – French insurance giant Axa today said it will pay €300 million (RM1.5 billion) to some 15,000 restaurants fighting to have at least part of their losses due to Covid-19 lockdowns covered by their policies.
The agreement comes as Axa faces suits from restaurant owners saying the insurer is trying to back out of its contractual obligations, putting their livelihoods at risk.
Most of the suits so far have been successful.
“I’m sorry about all that has happened, because we were at odds with restaurants over a misunderstanding,” Axa chief executive Thomas Buberl told Europe 1 radio, noting that some appeals court rulings have been in the company’s favour.
“We’re offering a settlement to lots of people who haven’t asked for anything; even those who have lost in court will be able to be part of it.”
Restaurants were allowed to start serving patrons indoors yesterday for the first time since October, as France emerges from a third coronavirus lockdown.
The government has unlocked billions of euros in aid for restaurants and other businesses forced to close in a bid to slow contagion rates.
But, industry officials said thousands of eateries are facing huge debt piles and the prospect of crimped revenues in the months to come since capacity levels remain capped for now.
Axa’s clients sought relief via their policies that cover “administrative closures” for a variety of reasons, including health shutdowns.
The firm refused, citing a clause specifying that any shutdown applies only to the individual restaurant covered, which excludes closures due to a generalised health emergency.
It said some 1,500 suits have been filed, the first by Parisian restaurateur Stephane Manigold, who obtained €70,000 in May last year to cover losses at his two-Michelin-starred Maison Rostang and three other eateries.
“This response is not compensation, it’s a transaction,” said Buberl.
“We want to accompany our restaurant clients during this reopening period, and it’s important to put this difficulty behind us.” – AFP, June 10, 2021
