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Michael Jacksons estate set to battle insurance company

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The family of Michael Jackson and his insurance company are set to go head to head in court.

The Michael Jackson estate is furious that Lloyds of London has refused to pay out on a $17.5million insurance policy that covered the ‘This Is It’ tour.

The policy was originally issued by Lloyds to cover for any potential losses throughout the tour, however earlier in the year, the insurers asked a court in Los Angeles to declare the policy null and void, claiming the singer had lied about his medical history.

AEG Live had originally taken out the $17.5million insurance policy two months before the concerts were due to start, to cover any unexpected cancellations, and as security in the event of a non-appearance from Jackson.

However legal papers filed at the Los Angeles Superior Court said that AEG Live submitted a claim within days of the singer’s death, but had not fully disclosed his medical history, including his drug addiction.

Lloyds also continued to say a required medical examination was not carried out.

They claim Jackson failed to disclose he was using the drug Propofol to help cure his insomnia, and lied by claiming he had not seen a doctor since 2005.

Propofol is a powerful drug that is normally only used in hospital operating rooms as an anaesthetic.

Michael Jackson died at the age of 50 in his rented home in LA in June 2009, after an overdose of Propofol.

Lloyd's insists the policy 'was restricted to losses resulting from accident only' pointing out Michael's official cause of death was 'homicide.'

Dr Conrad Murray, Jacksons personal physician is set to stand trial in September for involuntary manslaughter charges.

Jackson’s estate has since filed a cross-complaint, claiming the singer never intended to die, whether by homicide or not, so his death still qualifies as an accident.

And on top of the original $17.5 million the estate will now claim punitive damages.

Howard Weitzman, a lawyer for Jackson's estate, called the Lloyd's complaint 'nothing more than an insurance company trying to avoid paying a legitimate claim by the insured.'

The concerts would have been star's final live appearances and were aimed at helping clear his £250m debts. 

Since the 'King of Pop's' death his estate has managed to clear most of his debts from the re-issue of many of biggest hits.

By Ben Malkin

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