Buncefield insurers recoup £5m in payouts
Insurance firms are set to receive back £5 million of pay outs related to the Buncefield oil disaster after a High Court judge ruled that French oil giant Total was fully responsible for the explosion.
The High Court ruled that Total must pay £750 million in damages for the Buncefield oil explosion in December 2005.
The ruling gives Total complete legal liability for the disaster.
Total had disputed its liability, claiming that joint-Buncefield owner Chevron should pay out for some of the damage caused.
Chevron owns 40% of the site, whilst Total owns 60%. They jointly operate the depot under the name Hertfordshire Oil Services (HOS).
Employee contracts at the site, however, are held with Total rather than with HOS.
As such, the judge ruled that Total was performing all operational and maintenance activities at the site and was fully responsible for health and safety procedures.
German-insurer Allianz, together with other insurance firms including RSA, AXA and Norwich Union, will receive back £5 million they had paid out on behalf of HOS.
A spokesperson for Allianz said: “The in-fighting between Total and Chevron over how they share the cost has caused another layer of delay in what has been a three year legal ‘jamboree’ involving successive attempts to deny paying compensation for much of the losses suffered.
“Claimants have been forced to wait, and this includes Allianz, and unnecessary legal expense has been incurred since the trial began last October.”
Category: Allianz News, Companies News, Insurance News
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