Michael Jackson concert insurer refuses $17.5m payout

The insurers of Michael Jackson's ill-fated comeback concerts have asked a judge to nullify the singer's insurance policy, claiming they were not told that Jackson was taking drugs. Underwriters at Lloyd's of London, which is suing promoters AEG Live, want the Los Angeles superior court to throw out AEG's $17.5m (£10.6m) policy.

The dispute has been in the making since Jackson's death in 2009. Within months of the cancellation of the singer's O2 Arena residency, the Associated Press was reporting that clauses regarding illicit drug use could excuse Lloyd's from paying out. This indemnity is no trifling matter: in the case of a successful claim, insurers of the 50-show run may owe more than £300m.

Lloyd's lawsuit against AEG claims the company failed to disclose the singer's medical history, "including, but not limited to, his apparent prescription drug use and/or drug addiction". They also allege that AEG did not disclose the star's use of propofol – an anaesthetic that has been blamed for his death. Attempts to settle the matter out of court were apparently unsuccessful and "underwriters therefore request that the policy be declared null and void".

Jackson died aged 50 at his home in Los Angeles on 25 June 2009, after allegedly receiving a dose of powerful sedatives from Dr Conrad Murray. Murray is due to stand trial in September on a charge of involuntary manslaughter. He has pleaded not guilty.




source : http://www.guardian.co.uk/

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