The Supreme Court of Virginia has ruled that US Airways can't collect insurance money for post Sept. 11 loss of business related to the terrorist attacks.
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US Airways can't collect on post 9/11 service disruption
- Thread starter 700UW
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PQAKnow-It-All
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Ok, this doesnt make sense to me. Isnt the money from the government a LOAN? How can they deny payment of insurance when the company had a LOAN, which has to be repaid?
A little discussion here would be interesting...
A little discussion here would be interesting...
No, USAir (and all other airlines) shared the $5 billion in cash paid out in late 2001 and early 2002. That was money Congress appropriated to reimburse all airines for their business interruption September 11-13, 2001. And it was a grant, not a loan.
USAir (and a couple other airlines) also sought and received loans guaranteed by the ATSB. But that doesn't change the fact that USAir received the cash grants just like all other airlines.
Recall that in 2003, Congress did it again with the refund of the September 11 Security Fee ticket tax and the reimbursement for the new flight deck doors, doling out about $3 billion more.
BoeingBoy
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Just reading between the lines, looks like US filed an insurance claim for losses due to DCA being shut down. This was in addition to accepting the government money and the ATSB loan.
Seems that the insurance company won't have to pay on the claim, according to the VA state supreme court.
Jim
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i think, in business parlance, that would be called: "double dipping"?
AIRWOMAN
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No different than car insurance or medical insurance pay outs.........one time for a claim and that's it.
US1YFARE
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not necessarily...it's called the collateral source rule...sometimes, when you actually pay premiums for the insurance, you can double dip...however, I would suspect that either there was an enforceable provision in the policy that does not allow for "double dipping", VA does not recognize this rule, the law passed by Congress to allow for the payment protected against double dipping, or because it was the government who made the payments, you cannot double dip. But, "double dipping" is not always impermissible.
