The Cologne district court has ruled that the termination of the cancellation insurance for the FIFA World Cup in Korea and Japan last year by Axa was unlawful.
The court also ruled that, as leader of the consortium of 63 insurers, Axa was liable to pay FIFA compensation amounting to its own participation quota of somewhat more than 20 percent. The other insurers are liable to pay compensation on a pro rata basis. FIFA said it will examine the steps it needs to take against the joint insurers.
Following the attacks of 11 September 2001, Axa terminated the insurance cover for the World Cup, giving notice of 30 days. The Cologne district court ruled that Axa terminated the policy unlawfully and negligently, and that the termination of the contract was a breach of good faith.
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