Car Insurance Enterprise Underwriters Gone Bust

[spyinthesky]

Anyone had any issues with their car insurance following the financial problems with Gibraltar based Enterprise?

 

I only found out about this yesterday by letter from the liquidators.

 

Affected car policy is with Admiral but haven't heard a peep from them.

 

Hopefully they have transferred cover over to another underwriter but cant get hold of any information from Admiral atm

[SaintMichael]

I was with them via quoteline direct and was notified by them of the issue, then got the following from Grant Thornton to confirm that cover ended on 26 October. quoteline offered links to alternative providers to arrange cover which I did only to then find the new cover didn't start until 2 November, so I was inadvertently driving around uninsured for a view days. I've now received the compensation for the remainder of the Enterprise policy

 

I doubt that Admiral will have transferred you to another company as they would need a new premium from you. Best to check on MIB what status your vehicle is showing as I reckon you'll be uninsured.

 

 

 

Dear Policyholder

 

Enterprise Insurance Company Plc (in liquidation) – Notice in accordance with section 158 of Financial Services (Insurance Companies) (Solvency II Directive) Act / Notice of disclaimer

 

I was appointed liquidator of Enterprise Insurance Company Plc (“the Company”) by Order of the Supreme Court of Gibraltar dated 26th October 2016 (“the Order”).

 

A copy of the Order appointing me can be found at http://www.eigplc.com. The Order was made following an application to the Supreme Court of Gibraltar by the Gibraltar Financial Services Commission (“GFSC”) on the ground that the Company is insolvent.

 

The GFSC has determined under section 150(1) of the Financial Services (Insurance Companies) (Solvency II Directive) Act that the opening up of winding up proceedings commenced with effect from the date of the Order namely 26th October 2016 and has taken necessary steps to inform the supervisory authorities of all Member States of its decision to open up winding up proceedings in accordance with section 157(1).

 

Consequent on the decision by the GFSC to open up winding up proceedings, the authorisation of the Company as an insurer has been withdrawn in accordance with the procedure laid down by section 106 of the Insurance Companies Act (as amended).

 

The records and information available to me as liquidator of the Company indicate that you are a creditor of the Company in your capacity as a policyholder of an insurance policy underwritten by the Company as insurer.

 

Notification under section 158 of the Financial Services (Insurance Companies) (Solvency II Directive) Act

 

Under section 158(1) of the above cited Act, I am to notify you of the GFSC’s decision to open up winding up proceedings as well as to provide you with the additional information set out in section 158 and 159 of the Financial Services (Insurance Companies) (Solvency II Directive) Act. I therefore attach a notice setting out the relevant information.

 

 

Notification of disclaimer of motor insurance policy

 

Following my appointment as liquidator on 26th October 2016, I have disclaimed all motor insurance policies under section 209(1) of the Insolvency Act with effect from 0:00 Hours 27th October 2016 (“the disclaimer”).

 

Under section 209(3) of the Insolvency Act, I am obliged to provide you with notice of the disclaimer within 14 days of the date of the disclaimer notice. I now therefore enclose a copy of the disclaimer notice dated 27th October 2016 (“the date of disclaimer”).

 

The disclaimer does not affect claims which have arisen under a contract of motor insurance underwritten by the Company prior to the date of disclaimer namely 0:00 Hours on 27th October 2016.

 

I have appointed Quest Consulting (London) of Cutlers Court, 115 Houndsditch, London EC3A 7BR (“Quest”) to assist me in the liquidation as claims manager. Policyholders should therefore report claims to Quest and should continue to correspond with Quest in respect of any outstanding claims, either by post or by email to: phafner@quest.com

 

Following the date of disclaimer, you will not be able to claim under the policy for an insured event or claim arising after 0:00 Hours on 27th October 2016 although any person sustaining loss or damage resulting from the disclaimer can make a claim in the liquidation under section 212(2) for the amount of the loss or damage. Such a claim will be limited to a pro-rata claim for the return of the premium as at the date of the commencement of the liquidation namely 26th October 2016 in the absence of me agreeing or the Court directing otherwise.

 

Policyholders in the UK may be eligible for compensation from the Financial Services Compensation Scheme (“FSCS”). Details can be found on the website http://www.fscs.org.uk. Information specific to the insolvency of the Company can also be found on this site.

 

Insurance claims (as defined in the Financial Services (Insurance Companies) (Solvency II Directive) Act take precedence over other claims in accordance with section 152(1) of this Act and subject to sections 152(2) and 152(3).

 

On the estimate presently available to me, the Company will have a substantial deficit and it is unlikely that the Company will be able to pay any creditors other than those with “insurance claims” under section 152(1)/ 152(2) or a preferential interest under sections 152(3). At this stage, I cannot at present confirm the likely amount of any such dividend or when I will be in a position to pay such a dividend. I can however confirm that I do not believe there is any realistic prospect of a dividend being declared to any other creditor beyond those with insurance claims or a preferential interest under section 152(3). I will however continue to keep you updated by posting further information on the Company’s website at http://www.eigplc.com or by email updates (in the case of policyholders /creditors where I have such contact information).

 

Please note that neither I nor my staff are in a position to advise you or any other policyholder in respect of future insurance cover. Any such questions should be referred to your insurance broker or any other intermediary acting for you.

 

It will reduce costs substantially in the liquidation of the Company if I, my staff and any appointed agents can communicate with you by email. Please therefore confirm your preferred email contact address details for the purpose of future email communications by emailing the same together with your full name and policy reference number to liquidation@eigplc.com. Your communication will constitute your consent and authorisation to me, my staff and my appointed agents to use email to communicate with you.

 

 

Yours faithfully

 

 

 

Freddie White

Liquidator of Enterprise Insurance Company Plc (in Liquidation)

[spyinthesky]

Thanks for this

 

Have spoken to Admiral who tell me that they are still waiting information from their underwriters (which seems rather odd since they must have known about the problem for some time)

 

However I was told that the insurance cover via Admiral remains intact and it is OK to drive the car

[Petersfield Saint]

Good to know, thanks for this. Just checked that our three vehicles (two cars and a motorbike) are all ok but would never have given it a thought otherwise!