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LAMP is insolvent (underwriter for now4cover)

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Comments

  • Yep me too. I have had the same letter re Lamp. I paid my insurance with a credit card. Can I reclaim my payment via the credit card insurance?
  • LucyOD
    LucyOD Posts: 1 Newbie
    My policy was renewed last month and paid in full so I too am now wondering whether too take out now home insurance and if/how I can get my money back?
  • Indeed you can get a refund per Section 75 from your credit card.
    However, up until the 31st May you are covered but it may take some time for Now4Cover to get you and claim payout. FSCS will also offer protection.
    Post 31st May N4C will offer you an alternative cover but I reckon they won't be offering insurance premium refunds.
    If you want to go elsewhere this is when it would be good to claim via section75.
    I've initiated the claim and got a refund via my credit card company today - but that was rather premature of me as I can't be bothered with the hanging around to find out more on the 31st May and want alternative cover in play today.
    Hope this helps
  • I spoke to a broker at another company at another company and he said -


    [FONT=&quot]Your brokers have a duty of care for their customers and they and the current insurers should be looking for an alternative underwriter to take on the risks.[/FONT]
    [FONT=&quot] [/FONT]
    [FONT=&quot]From past experience this should not be a problem, but best to contact them to find out what is happening and expressing your concerns. You/they should not leave matters to the last minute.[/FONT]


    I am reassured by this. Hope that helps.
  • And from Insurance Age website -


    [FONT=&quot]This announcement comes months after the Financial Services Compensation Scheme (FSCS) found 165,000 motor and/or pet insurance policies to replace policies for those left without cover by Qudos. The Danish firm was declared bankrupt at the end of 2018.[/FONT]
    [FONT=&quot]FSCS has released a statement on the possible liquidation of Lamp, saying that it is “aware of the situation” and will work with the chosen liquidator “to protect eligible UK policyholders”.[/FONT]



    So this should be reassuring too.
  • I have been trying to call Now4Cover but struggled to find a phone number.

    Then I stumbled on these details for Michael Muzio (Chief Exec who sent out the emails)


    73-75 West Street Gravesend Kent DA11 0BS

    Phone: 44 1474335941
    Fax: 44 1474335941
    Email: michael.muzio@n4c.com








    I have not got a response today but I will try again tomorrow.
  • oz0707
    oz0707 Posts: 914 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Thanks for the above reassurances
  • I have just had this email from Now4Cover. What do people think?


    ***


    Please again accept my apologies for the difficult situation we have all been left in by LAMP. As we said, from the information we currently have, we believe you have three options:

    1. Wait for the outcome of the hearing on the 31st May.
    2. Wait to see if LAMP is acquired before then.
    3. Buy an alternative policy.

    The consequences of 1 are that if a liquidator is appointed and they deem there isn’t sufficient funds to meet potential claims they will cancel cover. If there are no funds from the assets of LAMP to refund the premium UK customers should have a valid claim for up to 90% of the lost money through the Financial Services Compensation Scheme (FSCS). Also, any claim that arises will most likely be subject to the FSCS where, again they will pay up to 90%.

    The consequences of 2 is that policies will remain in force and any claims met by the new owner.

    The consequences of 3 are you remove any uncertainty of option 1 on the cover you have in the event of LAMP liquidation. I don’t have any information whether, in that scenario, UK customers are entitled to compensation from the FSCS.

    We are also working with other insurers to provide replacement offers which is still ongoing. We will email with more news when this arrives.

    We’ve done our best to obtain clarity quickly for our customers. Given the delay between notice from LAMP and the insolvency hearing and potential for a sale we still have unanswered questions but we are trying hard to provide as much clarity as we can to customers.

    We will aim to provide whatever information and support that customers need to get any refund, either via the FSCS of LAMP.

    Again, we are deeply sorry for the situation LAMP has left us all in. We are trying our best to do the right thing by our customers.

    As more news arrives we will let you know.
  • kubilay123
    kubilay123 Posts: 9 Forumite
    On behalf of a family member, if you are paying by direct debit for the insurance, is there any reason you can't just cancel the direct debit and pay for a new insurance policy through another company?
  • jonfrewin
    jonfrewin Posts: 7 Forumite
    I think from reading earlier posts that where you are on a direct debit, that is an arrangement with a lender who has already paid the full premium to the insurance company, so your family member is probably still liable to repay the loan for the cover they’ve bought. It may be worth contacting that lender, but I’m not sure it’s sensible to just cancel the direct debit, as it could affect credit scores etc.
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