GAP Insurance 123 - Liquidation

manopa

I received a letter today saying that Enterprise Insurance have gone into liquidation!

I only took the policy out in February through GAP Insurance 123 and, unfortunately for me, I paid the premium in full. I presume GAP Insurance 123 are a broker & unaffected? I've not had chance to ring them yet.

:mad:

paddyandstumpy

Does it say anything about the FSCS on their letter?

manopa

It does, I'm just looking into it now.

CB1878

I have spoken to Gap 123 yesterday after getting the letter received the following. I have also spoken to the FSCS yesterday who confirmed the cover is still valid. Looks like everything is in hand.
Dear XXXXX,


Thank you for your contact today. Please accept our apologies for any concerns caused by the letter from Grant Thornton and I will try to explain the current situation and allay any fears that you may have.

Firstly please let me assure you that your policy is still valid and valid claims are still being honoured. I will try and explain the situation.

On 22nd July 2016 Enterprise Insurance Company PLC were instructed to cease writing new insurance business and a provisional liquidator was appointed at that time. As part of the terms and conditions of your policy any insurers failure to meet obligations to you then protection for that claim is offered automatically via the Financial Services Compensation Scheme in the UK. Claims have been processed via that scheme from that time.

Clearly the first issue of ensuring our customers are covered and continue to make claims was the paramount concern and this is being dealt with by the FSCS at this time.

With the likelihood of Enterprise being declared insolvent then a more long term solution is needed that is appropriate for Gap Insurance.

Consumers with Comprehensive Motor Insurance cover issued by Enterprise had their policies cancelled, and premiums refunded on the 26th October. This left them free to buy new annual motor insurance cover for their vehicle. However this route is not one that is open for Gap Insurance customers as the policy may run for a number of years and you only have a set period from the time you buy the vehicle in which you can buy the Gap cover. This means that simply cancelling the policy and refunding the customer leaves then in a position that they cannot buy replacement Gap cover potentially.

The alternative solution is that all Gap Insurance policy holders are moved ‘en bloc’ to a new insurer. In this case a mechanism has been agreed, in principle, to move all GapInsurance123 customers to AM Trust International, who have a ‘A’ credit rating financially. You will need to do nothing at all as the transfer is automatic for exactly the same policy terms for the remainder of the cover. You will also have the option of taking a cancellation and a refund of the remainder if you wish. A letter will come out to you in the nest few weeks outlining this process as we understand it.

Please accept our apologies for any concerns that the letter from Grant Thornton may have caused. Unfortunately we were unaware the letter was being sent and if we had been I would have insisted that it was worded in a much better way as to not cause undue concern for our customer. It was simply a generic letter for all insurance policyholders of Enterprise that left the impression that your policy may not be valid without ever stating the facts as they are for our Gap Insurance customers.

Please be assured we have done everything we can to ensure our customers are covered and that the insurance moves to the new underwriter as soon as possible.

If you have any concerns or queries please contact me directly.

Kind regards