LAMP Insolvency

Mogz

Hi everyone

I have had house insurance through now4cover who are a broker for LAMP. LAMP have filed for insolvency and have made it clear they cannot payout any claims.

Currently I am unable to cancel my insurance (on direct debit) with site showing “technical difficulties”

I got this email this morning:

24/05/2019

Dear Mr XXXXX,

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.

In the event LAMP is unable to meet its obligations, the Financial Services Compensation Scheme are there to provide financial support. You can find out more at https://www.fscs.org.uk . now4cover will support you through this process if you are required to make a claim for any premium paid or claims payments due. The Financial Services Compensation Scheme has offered assurances that it will be working with the appointed liquidator to protect eligible policyholders.

At this point in time you should carefully consider your options. You may wait for the outcome of the hearing on the 31st May, for which we will make you aware. Subject to the outcome of the hearing we may be able to provide an alternative insurer but we are unable to guarantee that. Finally you may choose to purchase cover elsewhere.

You will be unable to make any amendments or cancellations to your existing policy until the outcome of the hearing by the Supreme Court of Gibraltar is known. In the event you need to make a claim you should still login at https://www.now4cover.com and click claims, following the normal process. Unfortunately, claims processing and handling will be delayed until after the hearing.

I apologise unreservedly for the inconvenience this will undoubtedly have caused and of course this is very distressing and unwelcome news. Now4cover are proud of the service they have so far delivered to customers on behalf of LAMP. We have all been let down.

As more information arrives we will keep you updated.


Yours sincerely,
Michael Muzio, Chief Executive of now4cover
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I’m going to try and call in to cancel - but thought I would share this here as it’s not clear exactly how long LAMP has been unable to pay claims. I wonder if it can be demonstrated that they were unable to pay claims for a longer period, would I have a case to backdate some of my insurance premium as a refund?

Regards

Jon

AnotherJoe

For a start cancel your direct debit at the bank rather than call an insolvent company. . Then take out insurance yourself . I'm underwhelmed that your broker hasn't already suggested a new company so I'd dump them and buy direct.
No idea about refund of premium but presumably it's going to be small beer anyway especially as they say they can't cover further payments which implies they could have covered one you made say last week. I wouldn't bother chasing that.