Insurance company gone into liquidation , what are my rights ?

Mr_Poves

Hi , I hope someone can advise me on this please .
My van insurance is with a company called enterprise , I received an email from my broker this morning informing me that enterprise are insolvent , but not to worry and keep paying my premiums by installment ( as I pay monthly)
However I've just been onto the fscs website and read that they will only cover any claims with the minimum third party cover !
Obviously this is no good to me as I have insured an expensive vehicle fully comprehensively .
Can anyone advise me on this , as it's a bit awkward as there is a finance company in the middle who I pay the premiums to , but it looks like I need to sort some more cover out from elsewhere ?
Surely I can't be expected to pay for 2 insurance policies
at the same time ?
And on the other hand I can't be expected to pay a fully comp premium price , for 3rd party cover from the fscs .

Nilrem

Contact the finance company.

Normally they are jointly liable for anything purchased over £100 through them*, so in theory they should either be able to refund the unused months or arrange cover with a different insurer.
That would be what I'd expect for a consumer policy paid for using finance at any rate.


*Which is why you always want to pay for any expensive goods you can't carry out the store with you on a Credit card or similar, as it covers you if the company goes bust..

pappa_golf

https://www.eigplc.com/index.php


United Kingdom Policy Holders

I can confirm that Motorway Direct PLC has been appointed as one of the claims management companies assisting me in the processing of claims in respect of the following classes of business:
GAP Insurance
Motor Warranty
Brown and White Goods Warranty
Motorway Direct PLC contact details are: Telephone 03300 555 262 or
Email [EMAIL="customerservices@motorwaydirect.co.uk"]customerservices@motorwaydirect.co.uk[/EMAIL]
Information regarding the Financial Services Compensation Scheme may be obtained at the FSCS website
Frederick White
Provisional Liquidator
Enterprise Insurance Company plc






also http://www.fscs.org.uk/news/2016/july/enterprise-insurance-company-plc-now-in-default/




edit:


read this


http://www.midasuw.com/news/enterprise-insurance-company-update-29th-july-2016


however I think you need to speak to the finance provider as well (asap!)

Mr_Poves

Nilrem wrote: »

Contact the finance company.

Normally they are jointly liable for anything purchased over £100 through them*, so in theory they should either be able to refund the unused months or arrange cover with a different insurer.
That would be what I'd expect for a consumer policy paid for using finance at any rate.


*Which is why you always want to pay for any expensive goods you can't carry out the store with you on a Credit card or similar, as it covers you if the company goes bust..

Thanks for that , I was hoping someone would be around to give me an idea , I just have a feeling I will hit a brick wall in the morning when I start ringing around , I will update the thread tomorrow for anyone else stuck in this mess .

Mr_Poves

pappa_golf wrote: »

https://www.eigplc.com/index.php


United Kingdom Policy Holders

I can confirm that Motorway Direct PLC has been appointed as one of the claims management companies assisting me in the processing of claims in respect of the following classes of business:
GAP Insurance
Motor Warranty
Brown and White Goods Warranty
Motorway Direct PLC contact details are: Telephone 03300 555 262 or
Email [EMAIL="customerservices@motorwaydirect.co.uk"]customerservices@motorwaydirect.co.uk[/EMAIL]
Information regarding the Financial Services Compensation Scheme may be obtained at the FSCS website
Frederick White
Provisional Liquidator
Enterprise Insurance Company plc






also http://www.fscs.org.uk/news/2016/july/enterprise-insurance-company-plc-now-in-default/


however I think you need to speak to the finance provider as well (asap!)

Yes definitely , it just worries me how my broker says everything is fine , that statement then says it's not , and then I go onto read I don't even have the required cover from the fscs !

pappa_golf

I think in the last link you have "unlimited" (£) cover by the FSCA




Levels of Protection
Compulsory Insurance – Third-party cover under a motor policy.
FSCS protects compulsory insurance at 100%.
Non-Compulsory Insurance
FSCS protects the personal accident section of the policy at 100%.
FSCS protects all other types of non-compulsory insurance at 90%, e.g. accidental damage to own vehicle, except for small businesses with a turnover of £1million or more.

Mr_Poves

pappa_golf wrote: »

I think in the last link you have "unlimited" (£) cover by the FSCA




Levels of Protection
Compulsory Insurance – Third-party cover under a motor policy.
FSCS protects compulsory insurance at 100%.
Non-Compulsory Insurance
FSCS protects the personal accident section of the policy at 100%.
FSCS protects all other types of non-compulsory insurance at 90%, e.g. accidental damage to own vehicle, except for small businesses with a turnover of £1million or more.

Yes my bad , Just spoken to my broker and it's 90% cover , but how long it takes to claim is anyone's guess .
They didn't argue when I said it would be best to get new cover from somewhere else , so that says alot .
I've just spoken to the finance company , and in their own words - I am expected to pay the premium in full even though the insurance company have gone bust , Surely I can't be expected to pay 2 premiums every month for 1 policy ?

[Deleted User]

Mr_Poves wrote: »

Surely I can't be expected to pay 2 premiums every month for 1 policy ?

It's your own choice whether to purchase an additional policy. So yes you would have to pay twice because you are still liable to pay for the original policy until it comes up for renewal.

As your broker has already told you not to worry and to simply continue with payments as usual, this is what you should do.

Although the cover is reduced, any claim you might make is still guaranteed at 90% by FSCS.

bod1467

Remember ... your insurance was paid in full up front to the insurance company by the finance company. As such you effectively have a loan which you must still repay.

societys_child

As above^ many people think they're paying for the insurance monthly. They're not.

Same as if you'd taken a loan to buy a tv (or whatever) and were repaying in "12 easy payments". Defaulting on the loan is not a good idea.

If you took out a new car insurance policy, you'd have to pay that and pay off your existing loan.

Ectophile

bod1467 wrote: »

Remember ... your insurance was paid in full up front to the insurance company by the finance company. As such you effectively have a loan which you must still repay.

Why?

Assuming it's a personal van policy, then shouldn't Section 75 of the Consumer Credit Act apply?

If it's a company insurance policy, then that's a different matter.