LAMP is insolvent (underwriter for now4cover)

grovep

Received this email today any advice welcome (see now4cover's website for full text)

It is with deep regret that I am writing to inform you that the insurer your policy is underwritten by (LAMP Insurance Company) has submitted an Application to the Supreme Court of Gibraltar to appoint an Official Receiver and place the Company into liquidation. That Application was submitted on Thursday 16 May 2019 and the Court will hear the Application on Friday 31 May 2019.

LAMP have further stated their cashflow projections show that they have insufficient liquid assets to enable them to pay their debts as they fall due and there is no reasonable prospect of obtaining sufficient liquid assets in sufficient time to enable it to do so. Consequently, LAMP is insolvent.

We, as in now4cover, only became aware of this late on Monday evening this week. Since then we have been working tirelessly with the insurer, the relevant regulatory bodies and potential replacement insurance providers to understand more details about how this affects our customers. I can now confirm, as an interim note, the following:

• In the run-up to the 31st May LAMP are actively considering all options, including a potential sale of the business. Any such solution would, however, be subject to the acquirer completing its due diligence, regulatory approval, and making an unconditional financial commitment prior to the 31 May 2019 hearing date. In the event that such a solution is forthcoming, an update will be provided on LAMP’s website. We will update you further if more information is received.

• In the meantime, LAMP have stated that they are currently unable to meet any further claim payments. The full position will only be determined after the 31st May and the appointment of a liquidator.

• Now4cover are in discussions with a number of parties to replace LAMP.

LAMP’s insurance policies that have not expired, remain in force. However, as LAMP is insolvent it is unable to make any claim payments. The Official Receiver will work to collect the assets of LAMP with the objective of making distributions to insurance creditors, including policyholders. It is likely that the amount recovered will not be sufficient to meet the amount due to policyholders in outstanding claims and premium refunds.

DCFC79

What is it your wanting advice on ?

grovep

My home & contents policy renewed last month, it seems that I am no longer insured or at least unlikely to be able to claim. Should I obtain other insurance? claim on my credit card? Seek a rebate?
Thanks

Harvin1975

I also received the same mail today. Having taken out the Home insurance out last month I too am wondering what the best options are.

anonmum

hi,

Another angry customer here, left with no insurance potentially! (Well as I read it I still have insurance but wouldn't get a pay out if needed it...)

It's too much of a risk cos it would be sods law it would be tonight that my house burned down, so have signed up with a new company and cancelled DD to Now4cover/Lamp. Can't advise anyone else to do the same, but at least I can sleep tonight!


Anonmum

Inga2212

We just signed up and paid for a year's cover upfront last month. What are the chances of getting our remaining 11 months refunded to us?

oz0707

My policy is with these also.

Could someone confirm - Is the FSCS obliged to step in and honour claims in the event of someone needing to make one?

The email wasn't that clear to me. Saying the FSCS are there to help but not making clear if you are still insured?

c'est_moi

I would like to know what to do as well. Just paid for 12 months insurance for next year - it does not even come into force until the 28th! Paid by credit card. I have checked with the bank and the payment has already gone out. Will I get a refund from the the credit card company, or is it covered by a financial scheme, or have I just lost £200?

I am assuming the sensible thing to do is to take out cover today with another insurance company. I will get on to that now.

jonfrewin

My policy with now4cover also renewed within the last month. Presumably I need to make alternative arrangements and don’t stand much of a chance of getting any money back..?

1275

Just woken up to this email too.
I am unsure if i should take out another policy today or do fscs people ha ave too honour a claim in the next few days as its going to take until 31st to get any answers from these?
Also as I understand it I can't just cancel the direct debit as someone above has because paying monthly is like finance so they will still want there money every month and we will have to fight for as refund and in the meantime will have to pay for two insurances policies. Anyone know if it is ok too just cancel the direct debit?
As this is bought on monthly instalments through a finance company are they not obliged to refund/cancel and chase for the money as would be the case of goods and credit cards?

c'est_moi

I am wondering if distance selling rules would apply for me here. I paid £200 to renew the policy on the 20th of May - policy due to start on the 28th. Does anyone know if that means I am able to cancel the payment for a refulnd or does this not apply if the company has gone into liquidation.

Also, who do I contact? My bank? Never had to deal with anything like this before so just don't know where to start.

I am concerned that credit card may not refund as the payment was possibly through a third party ie an insurance broker. Anyone any ideas?