Enterprise Insurance - information for customers on how FSCS will pay compensation
25th October 2016
On 26 October, we expect motor policies with Enterprise Insurance to be terminated. FSCS has been working closely with the provisional liquidator Freddie White, of Grant Thornton to decide how to best compensate consumers. FSCS is paying Enterprise indemnity claims now and is also preparing to cover the return of premium for customers from 26 October, starting with motor insurance.
FSCS is finalising how it will pay compensation and it’s likely to pay this in three ways:
- We will pay finance companies where consumers have bought the cover using a loan. We’ve been working with the two main providers, Close Brothers and Premium Credit to finalise the terms of how we can arrange the payment. If you bought your cover using credit from either of these companies, we will pay the compensation directly to them and it will go towards paying back the loan.
- If your broker has been able to block transfer all of their Enterprise business to one new insurance provider, FSCS will pay the broker the return of premium compensation. They will then pass this on to your new insurance provider. Your insurer will tell you if this applies to you and you will be able to cancel any replacement cover during the “cooling off period” should you want to. If your broker has rearranged cover with another insurer on an individual case by case basis (rather than block booked) then FSCS will pay the compensation directly to you by cheque. You should speak to your broker to find out which applies to you.
- If you do not fit paragraph one or two, FSCS will pay the compensation directly to you by cheque. We will begin making return of premium payments in the next few days and will continue to do so as we receive policy data from brokers and the Provisional Liquidator and, in any event, well within 90 days. You should ensure that you buy a new insurance policy to avoid breaking the law by not having insurance.
We will publish an update on 26 October or shortly after to provide more information.
Click here for our Q and As on Enterprise Insurance.