Motorbike insurer MCE falls into administration - what it means for its 105,000 policyholders

r1100s

lisyloo said:

Dittany said:

I received the same email last night. They initially stated that all existing policies would continue to be honoured, but now say they will all end on Jan 31st 2022, and we will have to apply for refunds through the FSCS which will take ages. My annual policy with them was paid up front and expires in July 2022. Now I have to find and fund a new policy?!!

It won’t necessarily take ages but will take some time - yes.
frustrating I agree but I would have thought this is mostly good news that you will mostly not be out of pocket as you are protected.
yes claims take time and we are all aware of things taking longer due to the workforce isolating.
I sympathise with your frustration but I think this is 90% good news that as a consumer you are protected.
your glass is 90% full

I disagree. 
If you read the text they say:-

"you are likely to be eligible for a refund for the unused portion of your insurance policy by the Financial Services Compensation Scheme (“FSCS”), subject to eligibility and their compensation rules."

This means they are not obliged to refund you anything and you WILL be out of pocket, given that you're having to fork out for another policy (unless you take the vehicle off the road). Mine runs out in June, knowing how quickly the FCA works, I'll be astounded if I hear anything before it expires.

So for me it's not 90% glass full or empty, it's 50% at best. You're having to obtain another policy (if you have the money) and there's no guarantee you'll be refunded anything... 

Oh, and MCE are still selling polices, albeit under another guise?
I for one will never use any company with the letters "MCE" or any affiliation... 

Sandtree

Edd_Reed said:

Confirmed, thought it was spam first of all. They should be giving full policy refunds to non claimers compensate for the loss of no claims bonus.

And where do you think such monies would come from when the company is insolvent?

Policy refunds will come from the FSCS as will ongoing claims and so thats being paid for by people who bought policies from other insurance companies who were more prudent in their reserving, in part forcibly by not being based in Gibraltar

Why should my policy premiums fund compensation to you for your choice of insurer? 

Aretnap

r1100s said:

lisyloo said:

Dittany said:

I received the same email last night. They initially stated that all existing policies would continue to be honoured, but now say they will all end on Jan 31st 2022, and we will have to apply for refunds through the FSCS which will take ages. My annual policy with them was paid up front and expires in July 2022. Now I have to find and fund a new policy?!!

It won’t necessarily take ages but will take some time - yes.
frustrating I agree but I would have thought this is mostly good news that you will mostly not be out of pocket as you are protected.
yes claims take time and we are all aware of things taking longer due to the workforce isolating.
I sympathise with your frustration but I think this is 90% good news that as a consumer you are protected.
your glass is 90% full

I disagree. 
If you read the text they say:-

"you are likely to be eligible for a refund for the unused portion of your insurance policy by the Financial Services Compensation Scheme (“FSCS”), subject to eligibility and their compensation rules."

This means they are not obliged to refund you anything..

there's no guarantee you'll be refunded anything...

The caveat is to be expected. The administrators are not going to say "the FSCS will definitely refund you", because they are not the FSCS and will want to be careful to avoid sounding like they are speaking for the FSCS or offering any guarantees of their own.

It doesn't follow that there is any actual risk of not being refunded by the FSCS. 

roadglider

I contacted MCE this morning, explaining that I’d just moved house, and needed the new address putting on the policy, and any change in risk worked out. They won’t change anything. I explained I have an old address now on my policy, actually a holiday let used to bridge our house move, and naturally, not living there anymore. They still said cannot change it. So, explained my concern that policy address/postcode doesn’t match where I am now, and for the next two weeks or so, until end of Jan, does that mean a claim would not be honoured should I need it? There was a long pause.
They said, I’d be covered. I did a screen grab, and saved the chat script. It will still feel like I’m riding on eggshells…to the extent, I think I’ll take a new policy out sooner rather than later.

roadglider

I should also say, I contacted FSCS explaining my concern and gave them proof of new address. They said that was the right thing to do. 

MSE_Emily

Hi everyone, below is an update on the current situation at MCE, who have decided to disclaim all policies by the end of January.

Full story here: Motorbike insurer MCE to cancel cover for all 105,000 policyholders - what it means for you