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

Sandtree

Regulatory bodies do not deal with customers directly however a complaint can be escalated to the Financial Ombudsman if you are unhappy with a financial institute's response (or after 8 weeks if there has been no response).

FSCS is intended as a backstop, its ultimately paid for by the insurance premiums of everyone else, and so they are there to give confidence in the financial services industry and make sure customers dont materially lose out when regulation fails (in the UK an insurer must hold enough capital to cover a "1 in 200 year" event or series of events and if you are at that level you will be under special measures until you have a higher buffer... most insurers are 50% over that or more - MCE were not a UK insurer though). They are not there to ensure no one ever loses anything as that'd increase the cost of everyones premiums.

The NCD thing is effectively a goodwill guesture, as such there is no ability to enforce it and ultimately a line has to be drawn somewhere... if they allow a 7 day outside to get it then why not a 8 day? Its only one more day.

I dont think Bike insurance is the same as Car in this area but I assume you have checked the price of comp cover? In the car market TPFT is normally more expensive than comp despite the lower cover because of the negative selection (ie higher risk people congregate to it)

m1uk3

Thanks Sandtree, the problem with escalating to the Ombudsman is it's not really that I am unhappy with the FSCS response but rather that the current process doesn't take into account the value of NCB. However, I'll take a look around on the Ombudsman website and see if there is an angle I might be able to take. 

Yes I've tried getting quotes for TPTF and fully comp, they are both more expensive than 3rd Party only. Bike theft is very high in London and there are a lot of idiots on mopeds driving up premiums for everyone else. 

Sandtree

m1uk3 said:

Thanks Sandtree, the problem with escalating to the Ombudsman is it's not really that I am unhappy with the FSCS response but rather that the current process doesn't take into account the value of NCB. However, I'll take a look around on the Ombudsman website and see if there is an angle I might be able to take. 

Yes I've tried getting quotes for TPTF and fully comp, they are both more expensive than 3rd Party only. Bike theft is very high in London and there are a lot of idiots on mopeds driving up premiums for everyone else. 

Your complaint would be in relation to the decision not to extend the goodwill gesture by 7 days and so not about the FSCS

The FSCS limits I believe are ultimately set by the FCA however there are big holes in them, I know previously the FSCS website stated it may not cover indexation of annuities but it was as vague as "may" rather than definitive or suggesting it may replace indexation with something else. There role is complex because funds are finite and they do have a duty to claimants but also a duty to ensure the pot remains sufficiently funded to pay future claimants.

The FSCS isnt covered by the FOS and so no formal escalation route if you arent happy with their decision.

aja22

Today both myself and my eldest recieved cheques for two different policies, however my sons bike was stolen the day the "notice" email went out, (still covered according to mce) and is still awaiting settlement (if any) from his claim, if he cashes this check does he effectively close the claim...because a 100 odd quid cheque doesnt cover a bike that was worth £1800, and is still being payed for via finance