ENTERPRISE INSURANCE COMPANY PLC IN LIQUIDATION - Policyholder

NeedToPayTax

I received this letter in the post this morning, to me its rather much jargon i'm afraid and don't understand the implications. Please see below.

EDIT: CANNOT POST LINKS AS A NEW USER Prehaps I could email the scanned letter over to someone to post on my behalf? Not sure.
eigplc.com actually has the communication I received posted there.

I purchased a car from VW Garage (Northampton) back in April, 20/04/16, at the time I was sold this insurance, 'GAP' Insurance, the idea behind it was your covered for the next 3 years if someone writes your car off you get the full amount paid back for the car. this cost me £500.

Where do I stand now that the company has gone into liquidation?

Quentin

Gap insurance is being arranged with another company.

Reread your letter to get a better understanding.

All their gap clients got this letter this week

NeedToPayTax

Quentin wrote: »

Gap insurance is being arranged with another company.

Reread your letter to get a better understanding.

All their gap clients got this letter this week

Many thanks,

I also had a reply email from VW saying the same

"The company who underwrite it have gone into liquidation.
However the policy is being underwritten now by Motorway Direct.

This is just formalities and has to be sent out to make you aware, but nothing is affected for yourself."

feel stupid for missing it on the letter but hey I'll leave this thread up might help someone else searching

thescouselander

I had the same letter; it might as well have been written in swahili as all the legal jargon was very confusing. I ended up phoning the gap insurance company and they sent out something in plain English - here it is:

You may have received a letter from Grant Thornton regarding your Gap Insurance policy.
Firstly, I am delighted to confirm that Direct Gap Insurance and our parent company Motor Gap Ltd are in robust financial health. The Liquidator is referring to Enterprise Insurance Company as being insolvent in his recent communication to you.

Secondly, I can only apologise for the letter that has been issued by Grant Thornton. This letter is extremely confusing and refers to cancelled insurance policies. These are car insurance (compulsory road risk) policies, not GAP insurance policies.

Thirdly, all GAP insurance policies are still valid and in place and claims are being paid on a daily basis by the Financial Services Compensation Scheme. Currently, the FSCS is telling us there is a possibility that the Liquidator could cancel GAP insurance policies. In that event, we are confident that, we will be able to offer you a no cost replacement cover on exactly the same terms and conditions as your current Enterprise Insurance policy. If you do not wish to continue cover, then our understanding is that you will be entitled to a pro-rata refund of premium less 10%, which will be paid to you by the FSCS.

All new business written by Direct Gap Insurance is now being underwritten by the A+ rated insurer AM Trust International, who are completely unaffected by this situation.

Until we know for certain whether or not the Liquidator is going to cancel your policy, we are unable to give you more information, but there is no cause for concern with your cover.

Any update we receive we will communicate with you immediately.

Please feel free to get in touch if you require any further information.

NeedToPayTax

thescouselander wrote: »

I had the same letter; it might as well have been written in swahili as all the legal jargon was very confusing. I ended up phoning the gap insurance company and they sent out something in plain English - here it is:

thank you, glad I wasnt the only one!

dacouch

thescouselander wrote: »

I had the same letter; it might as well have been written in swahili as all the legal jargon was very confusing. I ended up phoning the gap insurance company and they sent out something in plain English - here it is:

Nice to see the broker are now protecting their clients with an Insurer that has a credit rating of A+ rather than the before where they used an overseas Insurer that had no credit rating...

What's the worse that could happen when you use an unrated foreign Insurer to underwrite your Gap Policies....

matty17r

We have received one of these letters and had no idea what is was going on about! As far as we know we do not have any insurance with Enterprise but they have quoted a policy number so we will wait and see.