Statement re insurance claim
08/02/2005
Further to the announcement made on 20 August 2004 regarding the fraud against the group by an employee involving payments of some £9.2 million, Charter plc announces that its insurance provider, AIG Europe (UK) Limited, has accepted Charter’s claim and has agreed to pay Charter £5 million, which is the limit of the cover under Charter’s fidelity insurance policy.
Charter earlier brought proceedings and obtained judgment against the employee, David Chu, for £9.2 million and is in the process of realising Mr Chu’s assets, which are unlikely to produce in excess of £100,000 after costs. Mr Chu was convicted of theft on 10 December 2004 and sentenced on 25 January 2005 to five years’ imprisonment.
There are a number of other potential sources of recovery available to Charter, which it is pursuing.
Under the terms of its fidelity insurance policy, Charter is entitled to recover the balance of its costs and uninsured losses before its insurance provider, AIG Europe (UK) Limited, is entitled by subrogation to recover what it has paid to Charter.
Contact
Andrew Fenwick; Pamela Small, Brunswick +44 (0) 20 7404 5959