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    • grovep
    • By grovep 24th May 19, 7:47 PM
    • 6Posts
    • 2Thanks
    LAMP is insolvent (underwriter for now4cover)
    • #1
    • 24th May 19, 7:47 PM
    LAMP is insolvent (underwriter for now4cover) 24th May 19 at 7:47 PM
    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:

    ē 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 LAMPís website. We will update you further if more information is received.

    ē 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.

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

    LAMPís 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.
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    • 1275
    • By 1275 25th May 19, 8:43 AM
    • 4 Posts
    • 0 Thanks
    Just read through my paper work properly and if paying monthly you can't just cancel the direct debit as its classed as a loan under orchard finance limited. They are going to want paying either way and looks like I will have to continue paying and claim via now4cover for the remaining refund and I will be paying two lots of insurance until sorted. Either way nothing can be done until after the 31st I am stuck now as my insurance is expensive due to as large claim a couple of years ago so going cheap isn't always the best option here I appear to have learnt and it appears they are not a good broker either as they should be suggesting alternative cover really not leaving it to us to sort.
    • rolysatch
    • By rolysatch 25th May 19, 10:12 AM
    • 9 Posts
    • 1 Thanks
    I’m paying for my insurance monthly by direct debit also. I think it's risky to just cancel the direct debit as you'll likely get into legal issues with the loan company. however on the email when I signed up for my insurance it says:

    "You may cancel your cover at any time if you decide it’s not suitable. We would hate to lose you but if you must, log into your account, click "Insured Properties and Items" and select that option. If a payment is due within five working days this will still be collected but other than that no further payments will be due and your direct debit will cease."

    So I’m assuming under normal circumstances you just cancel your policy and the direct debits cancel automatically with no cancellation charge. But unfortunately as I’m guessing most have you have seen they are preventing you from cancelling the policy.

    I'm no expert on these things but I’m going to get insurance elsewhere and hopefully be able to cancel after the 31st.

    The only other potential problem I could see is if a claim needed to be made whilst covered by both insurance companies at the same time - even though now4cover can't pay on claims they're saying we're still covered lol - so that could become a real headache.
    • 1275
    • By 1275 25th May 19, 10:36 AM
    • 4 Posts
    • 0 Thanks
    It does say we are still covered. My problem is I had a subsidence claim a few years ago with a different underwriter and sorting alternative insurance is less than straight forward no big companies will quote so I am really stuck until Tuesday now either way.
    I think cancelling after the 31st is the best idea unless now4cover can provide an alternative underwriter which to be honest as a broker they should be looking to sort at least straight forward alternatives for most without passing it over to us to do.
    I will get some quotes on Tuesday now as no specialist underwriters are open till then and I have to submit structural reports etc to prove that my issues were caused by a broken drain under the house and its not falling down.
    Like everything else they waited till Friday afternoon to deliver bad news. Fingers crossed nothing happens in the next few days as thats going to be a nightmare to sort out.
    • rolysatch
    • By rolysatch 25th May 19, 10:57 AM
    • 9 Posts
    • 1 Thanks
    yes i feel your pain, good luck i hope we get it sorted asap.
    • Floydie
    • By Floydie 25th May 19, 11:40 AM
    • 1 Posts
    • 0 Thanks
    home insurance
    I have home & contents insurance with now4cover and received the same email.
    Could someone clarify if it is allowed/legal to start another policy?

    Even if the issue is resolved on May 28 and another insurance company takes over, what is the likelihood that a claim would be paid (in full)?

    We have the added worry that we are due to commence building work on the house and some insurers won't take up a new policy when they know there is building work imminent.
    • prefdavid
    • By prefdavid 25th May 19, 2:15 PM
    • 20 Posts
    • 7 Thanks
    I'm no expert but their message is full of them giving us facts but not giving any advice. They say that claims are unlikely to be met and I for one, am not prepared to take the risk that something happens, especially something major, to find we have no way of obtaining payment to recompense us for that loss.
    • Kporch
    • By Kporch 25th May 19, 5:17 PM
    • 1 Posts
    • 0 Thanks
    We do have a claim in. People came to survey damage last weds and it would appear went into liquidation on the thursday. Am fuming as my cover also covers my business so that hasnít been covered for over a week now either. Goodness knows if going to get put money now for the claim.
    • anonmum
    • By anonmum 25th May 19, 11:02 PM
    • 64 Posts
    • 89 Thanks
    Re - Lamp / DD/ etc
    hi all,

    Firstly sorry to hear about all of you that have paid in full for your policies or just put in claims and now had the news dropped on you - really hope you can get your money back somehow!

    Since I can't cancel the policy through their website directly now, I have sent both a message through the website and an email stating I wish to cancel the policy before I cancelled my direct debit - again I cannot advise on the rights or wrongs of doing this - am just damn sure am not paying anymore for a service I am not getting! (Apart from the fact I can't afford to pay for two lots of insurance anyway!)

    Best wishes all,

    anonmum x
    • drdes11
    • By drdes11 26th May 19, 7:31 AM
    • 3 Posts
    • 1 Thanks
    Interestingly when you go on the fscs website for General insurance for Lamp it states that they are not accepting applications for the specified firm which is odd.

    Not sure what that means

    Real shame that Now4cover (who my policy was with) are not stepping up to give better advice
    • oz0707
    • By oz0707 26th May 19, 10:40 AM
    • 564 Posts
    • 150 Thanks
    I can't believe in this day and age of FSCS and consumer rights protected deposits etc an insurer can just go pop and you'd not be covered. Surely the Gov or FSCS will step in to honour claims. Imagine if someones house burnt down. Im holding tight till after the 31st I think
    • Zorillo
    • By Zorillo 26th May 19, 4:47 PM
    • 593 Posts
    • 388 Thanks
    More should be done to make people aware of the risks when insuring with cheap 'offshore' insurance companies, especially ones based in Gibraltar.
    • Jamo1761
    • By Jamo1761 26th May 19, 7:55 PM
    • 1 Posts
    • 0 Thanks
    Lamp Insurance
    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
    • By LucyOD 27th May 19, 11:22 AM
    • 1 Posts
    • 0 Thanks
    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?
    • Harvin1975
    • By Harvin1975 28th May 19, 9:59 AM
    • 3 Posts
    • 0 Thanks
    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
    • davesuncat
    • By davesuncat 28th May 19, 2:29 PM
    • 4 Posts
    • 1 Thanks
    Alternative cover?
    I spoke to a broker at another company at another company and he said -

    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.

    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.

    I am reassured by this. Hope that helps.
    • davesuncat
    • By davesuncat 28th May 19, 2:37 PM
    • 4 Posts
    • 1 Thanks
    And from Insurance Age website -

    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.
    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”.

    So this should be reassuring too.
    • davesuncat
    • By davesuncat 28th May 19, 3:50 PM
    • 4 Posts
    • 1 Thanks
    Now4Cover details
    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

    I have not got a response today but I will try again tomorrow.
    • oz0707
    • By oz0707 28th May 19, 7:16 PM
    • 564 Posts
    • 150 Thanks
    Thanks for the above reassurances
    • davesuncat
    • By davesuncat 30th May 19, 2:08 PM
    • 4 Posts
    • 1 Thanks
    Update from Now4Cover
    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 isnít 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 donít 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.

    Weíve 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
    • By kubilay123 30th May 19, 6:03 PM
    • 9 Posts
    • 1 Thanks
    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?
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