Jackson policy 'excluded illicit drug use'

The insurance policy taken out by concert promoter AEG Live on Michael Jackson's cancelled 'This Is It' residency had an exclusion for unlawful drug use, it has emerged.

A copy of the document obtained by The AP states that the policy would become invalid were Jackson to illegally possess drugs or be involved in the "illicit taking of drugs".

The insurance reportedly covered the first 13 shows of Jackson's 50 planned appearances at London's O2 arena.

There had been speculation that AEG Live could face a £300 million insurance liability if it "self-insured" the concerts after initially struggling to find a firm to underwrite the risk.

It was later claimed that the company had succeeded in securing a $17.6 million (£10.6 million) policy for the first 23 shows of the residency.

AEG Live chief executive Randy Phillips also stated that the firm would be covered in the event of Jackson's death being caused by an overdose, though this claim was questioned by a Lloyd's Of London spokesperson.

It has been suggested that Jackson died after being given a shot of the painkiller pethedine, which reacted with a dose of surgical anaesthetic propofol that had been administered earlier that day.