FSCS will pay thousands of motor policy holders following the collapse of Enterprise Insurance

26th October 2016

The liquidator has cancelled motor policies

FSCS has started the process of paying return of premiums to policy holders who previously had insurance with Enterprise Insurance, the Gibraltar based insurance company. We expect to pay thousands of motor policies in the next few days.

The firm was deemed insolvent by the Gibraltar Financial Services Commission (FSC) in July. Since then, the liquidator Freddie White of Grant Thornton has been reviewing the status of the company. This morning, Freddie White disclaimed the company’s motor insurance policies; he will go on to handle non-motor policies in the coming weeks. 

FSCS has been working closely with the liquidator and the FSC to determine the best way to protect UK policyholders.  Now that the decision has been made to disclaim the motor insurance policies, FSCS can start paying return of premiums. This is an automatic process and consumers do not need to do anything to claim the compensation.

The failure affects about 46,000 UK customers with Enterprise motor insurance policies.

FSCS Chief Executive, Mark Neale says: “FSCS is now paying compensation to thousands of policyholders now that Enterprise motor policies are no longer valid. If you are not sure if you are eligible for compensation then speak to your insurance broker. Again, I would strongly urge you to check your insurance and if necessary find new cover immediately to avoid breaking the law and putting yourself and others at risk by not having a valid insurance policy.”

FSCS cannot protect insurance claims that happen after the liquidator cancelled the policies today (26 October 2016).

More information about how FSCS will compensate consumers is available in our
Q and A section. If you are unsure whether you were covered by Enterprise Insurance you should look at your policy documents and speak to your broker.

Notes to editors

  • FSCS is the UK's statutory compensation scheme for customers of authorised financial services firms. FSCS is funded by the financial services industry and protects investment business, deposits, home finance – mortgage – advice, and general insurance and insurance broking. FSCS can pay for financial loss if a firm cannot pay claims against it. We are independent, and do not charge individual customers for using our service.
  • Enterprise Insurance is a Gibraltar based insurance company that was declared insolvent on 22 July 2016. No policies have been accepted by the company since that date.

 

Jargon Buster

  • Deposits

    money placed in a bank or similar institution to earn interest or for safe-keeping.
  • Eligible

    qualifying for compensation under Scheme rules.
  • Investment

    a financial product in which money can be invested to earn interest or profit (although the value of investments can go down as well as up).