Insurance News

Al-Qaida should pay insurers $9.35 billion, judge recommends

Posted on: October 24, 2011

NEW YORK—A federal judge has recommended that several insurers be given the right to collectively demand $9.35 billion from al-Qaida.

Under the Anti-Terrorism Act, the insurers should recover three times the amount they paid in claims related to the Sept. 11, 2001, terrorist attack on the World Trade Center, U.S. Magistrate Judge Frank Maas ruled Friday.
The insurers had won default judgments in April 2006, after the terrorism group failed to appear in court to protest their allegations that it be held liable for their losses.

In his ruling Friday, Judge Maas gave the parties 10 days to object to his recommendation on how much those judgments should be worth.

Insurers involved

Other insurers named in the case include units of Paris-based AXA S.A; Edmonton, Alberta-based TIG Insurance Co.; Boston-based OneBeacon Insurance Group Ltd.; and Warren, N.J.-based Chubb & Son Inc.’s Federal Insurance Co., Chubb Custom Insurance Co., Chubb Insurance Co. of Canada, Chubb Insurance Co. of New Jersey and Chubb Indemnity Insurance Co.

The recommendation goes to Judge George B. Daniels of the U.S. District Court of the Southern District of New York, who is presiding over Federal Insurance Co. et al. vs. al Qaeda.

The development is the latest a series of legal actions that continue more than a decade after the terrorist attacks.

Copyright © 2011. Crain Communications, Inc.

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