Getinge files lawsuit against insurer Moderna Försäkringar, Swedish branch of Tryg Forsikring A/S
Getinge AB and its subsidiaries Atrium Medical Corporation and Maquet Cardiovascular US Sales, LLC have filed a lawsuit against the insurer Moderna Försäkringar, Swedish branch of Tryg Forsikring A/S Danmark, to secure insurance compensation for expected costs associated with the ongoing product liability claims filed in the U.S. and Canada regarding two different types of surgical mesh products. The lawsuit will not cause any adjustment to Getinge’s previously made provision of SEK 1.8 billion related to the same claims, communicated in October 2018.
Getinge’s global liability insurance program for the companies in the group, applicable to the periods relevant for two sets of ongoing liability claims related to two different types of surgical mesh products includes insurance coverage for product liability consisting of three layers: a primary insurance layer, a first excess insurance layer underwritten by Moderna, and a second excess insurance layer, underwritten by another insurance company and activated once the limit under the two previous layers has been reached.
The primary insurers, leading carriers in the global insurance market, which drafted the wording that governs the insurance policies in the program, have paid compensation to Getinge for costs associated with product liability claims such that the limit of liability under the primary insurance policy has been reached. Despite this and the fact that Moderna’s insurance terms and conditions are the same as the terms and conditions of the primary insurance policy, Moderna has declined to provide insurance coverage. This is, according to Getinge, in conflict with both the first excess insurance policy and the assessment made by the primary insurers.
The lawsuit filed before the Stockholm District Court, only covers the first excess insurance policy, and involves disputed insurance coverage of up to approximately 500 MSEK. The second excess insurance policy, which is not part of the lawsuit, is activated once the limit of coverage under the two previous layers is reached and covers a maximum of 1 000 MSEK in total for the policy years concerned.
Media contact:
Anna Appelqvist, Vice President Corporate Communications
Tel: +46 (0)10 335 5906
Email: anna.appelqvist@getinge.com
About Getinge
With a firm belief that every person and community should have access to the best possible care, Getinge provides hospitals and life science institutions with products and solutions that aim to improve clinical results and optimize workflows. The offering includes products and solutions for intensive care, cardiovascular procedures, operating rooms, sterile reprocessing and life science. Getinge employs over 10,000 people worldwide and the products are sold in more than 135 countries.
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