In a judgment involving damages under an insurance policy, the Supreme Court of Poland indicates how to calculate the amount of damages, and discusses various possible methods of monetary compensation for property damage in cases involving an insurer’s liability.
The unstable economic situation connected with the COVID-19 pandemic is also impacting the insurance industry. Dependent on global phenomena and trends, the insurance market will soon have to face a new economic reality, develop appropriate solutions for clients, and prepare to defend against claims.
The COVID-19 pandemic affects the situation of companies and individuals. Many of them wonder whether they will be able to take advantage of insurance cover they have taken out. The insurance industry is wondering the same thing.
The COVID-19 pandemic is paralysing the global economy, but it is not the virus itself preventing businesses from operating. States seeking to protect their citizens against danger are introducing unprecedented limitations on civil rights and freedoms, rendering operations in some sectors of the economy impossible. In other sectors, business has become more burdensome, costly or risky. This has generated a heated debate over who should bear the financial consequences of limitations imposed on businesses and the huge resulting losses.
The state’s enforcement of epidemiological restrictions (commands and prohibitions), despite many doubts as to their constitutionality, currently constitutes lawful exercise of public authority. Nonetheless, even actions by the state with the blessing of the law may entail a risk of COVID-19 infection for doctors, nurses, police and others. Serious detriment to their health—or even death—as a result of infection may give rise to liability on the part of the State Treasury under the principle of equity.
In March, the European Commission recommended that member states introduce temporary restrictions on travel to the European Union (through 15 May 2020). The vast majority of European countries coordinate border control measures at the EU level. States are again fencing their territories, suspending the free movement of persons also between regions. Restricting travel may not only interfere with holiday plans and delay the delivery of goods and services, but also slow down legal proceedings. However, this can be prevented through legal assistance from cooperating courts of member states.