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The Archdiocese of New York has filed a lawsuit against its long-time insurer, Chubb, accusing the company of evading its responsibility to cover settlements related to clerical sexual abuse claims.
Cardinal Timothy Dolan alleges that Chubb is neglecting its contractual obligations despite receiving billions in premiums from the archdiocese over the years.
In a letter to the Catholic faithful, Cardinal Dolan explained that the archdiocese has already resolved over 500 cases without insurance coverage. However, approximately 1,400 additional cases remain unresolved.
The archdiocese wishes to settle these claims swiftly but says that Chubb is deliberately avoiding its duty to pay.
“It has always been our wish to expeditiously settle all meritorious claims,” the archbishop said.
“However, Chubb, for decades our primary insurance company, even though we have paid them over $2 billion in premiums by today’s standards, are now attempting to evade their legal and moral contractual obligation to settle covered claims which would bring peace and healing to victim-survivors.”
Dolan harshly criticised Chubb. He claimed the company is falsely arguing that the abuse was “expected or intended” by the Catholic Church. Such a claim, if accurate, would nullify insurance coverage.
Dolan called that argument “false” and “outrageous” and said the insurer is merely trying “to protect their bottom line.”
The lawsuit, filed under New York’s General Business Law, alleges that Chubb’s actions amount to deceptive business practice. It claims the company is failing both the archdiocese and abuse survivors.
Child abuse covered up
Chubb responded with a strong rebuttal and put the onus on the Archdiocese of New York.
“The Archdiocese of New York tolerated, concealed and covered up rampant child sexual abuse for decades,” Chubb said in a company statement.
The company also accused the archdiocese of withholding financial information regarding what it knew about the abuse.
Chubb alleged that the archdiocese is attempting to “deflect, hide and avoid responsibility” for its actions and protect its financial resources. The insurer argues that the archdiocese has substantial wealth and is unwilling to provide adequate compensation to the victims.
Accident Compensation Corporation (ACC)
In New Zealand, the situation involving sexual abuse claims and compensation differs significantly from that in the US. This is due to the no-fault accident insurance scheme managed by the Accident Compensation Corporation (ACC).
Under ACC, anyone who suffers an injury, including mental injury from sexual abuse or assault, can apply for compensation. Victims of sexual abuse do not need to sue individuals or organisations to receive compensation.
The financial burden of compensating victims would fall largely on ACC, not the Church or its insurers.
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