Tokio Marine says Greensill policies void
Tokio Marine says Greensill policies void
5 April 2022
Tokio Marine says its “extensive investigations” have determined that Greensill policies written by Australian subsidiary BCC Trade Credit are not valid due to the insured’s misrepresentations and duty of disclosure breaches.
“In light of those fraudulent misrepresentations and fraudulent breaches of an insured’s duty of disclosure, Tokio Marine has today advised counterparties that these policies and related obligations are void from inception,” the company said in a statement issued yesterday.
“Tokio Marine will vigorously defend any claims against it and against BCC relating to any policies purportedly issued to Greensill. This includes the claims that are the subject of pending proceedings in Australia against Insurance Australia Limited to which BCC has recently been joined.”
IAG previously owned 50% of BCC, but sold its holding to Tokio Marine on April 9 2019. It has advised the market that it has no net insurance exposure on Greensill trade credit policies.
The company acknowledged the Tokio Marine statement and said claims and potential litigation by administrators of Greensill or other claimants seeking confirmation of coverage or the validity of claims had been anticipated.
“IAG and Tokio Marine, through its BCC subsidiary, continue to work together and are defending these claims and litigation,” it said.
“In regard to potential exposure to Greensill-related claims and litigation, IAG maintains its position that it has no net insurance exposure to trade credit policies sold through BCC.”
A case management hearing over Greensill matters is scheduled in the Federal Court on Thursday before Justice Jayne Jagot.
Tokio Marine says its investigations are ongoing but it has identified issues affecting “numerous policies, renewals and endorsements” going back to at least September 2018.
“Material misrepresentations and non-disclosures” had continued after July 1 2019 “when BCC is purported to have issued policies with Tokio Marine as the insurer, and have never been corrected despite numerous requests from BCC for clarification and warnings to Greensill that coverage could be invalid as early as July 2020,” Tokio Marine says.
insuranceNEWS.com.au has sought comment from Greensill administrators.
