Lemma Europe Insurance Company Ltd


1. Lemma was based in Gibraltar so does the FSCS cover policyholders with the firm?

FSCS does protect many policyholders. FSCS will protect most of the policies Lemma sold in the UK to individuals, small businesses and any policyholder who purchased compulsory employers liability cover.

FSCS protects policies taken out in the UK in respect of EEA risks and policies taken out in the EEA (and Gibraltar) in respect of UK risks.

Return to top

2. Which Lemma policies may qualify for FSCS protection?

Lemma sold a variety of policies which may qualify for FSCS protection. They include:
• General property
• Householders
• General public liability
• UK employers liability
• Fine art and jewellery
• Legal expenses
• Bloodstock
• Livestock
• UK solicitors' professional indemnity

FSCS does not protect certain kinds of policies of insurance such as for ships (including yachts), credit, goods in transit or reinsurance.

Return to top

3. Are solicitors covered by FSCS?

FSCS protects individuals and small businesses. If the firm is a small business with an annual turnover of less than £1m at the time that you purchased one of these policies we should be able to help you. Where we can help protection will be at 90% of the agreed value of the claim (Protection is unlimited but if the policy contains a financial limit we have to apply that limit).

Return to top

4. Why does FSCS pay compensation at 90% of the value of the claim?

The limit is laid down in the rules set for FSCS by the Financial Conduct Authority (FCA). There is no upper limit to our level of protection for insurance claims, although there may be financial limits and other terms expressed within the policy of insurance that will still apply.

Return to top

5. What is the limit for employer’s liability insurance?

FSCS protection for employer’s liability insurance where compulsory is 100% of the value of the agreed claim under the policy.

Return to top

6. Are there any limitations or restrictions on FSCS protection for Lemma policyholders?

The maximum level of compensation for claims against firms is 90% of the agreed claim with no upper limit.  FSCS protects certain compulsory insurance (such as employer’s liability and motor third party risks) at 100% (to the full extent of the policy cover).

Return to top

7. Who qualifies for FSCS protection?

FSCS protects individuals and small businesses against UK risks. The FSCS covers business conducted by firms authorised by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). European firms (authorised by their home state regulator) that operate in the UK may also be covered.

Return to top

8. Does FSCS cover all Lemma policies?

FSCS does not cover all policies or policyholders. For example:

• We do not protect any ships (including yacht) insurance policies.
• We do not protect large businesses unless they bought compulsory insurance, such as employer’s liability cover.
• We do not protect small businesses where they purchased credit or goods in transit insurance.
• We do not protect reinsurance.
• FSCS protection is unlimited but if the policy contains a financial limit we have to apply that limit or other terms.
 

Return to top

9. What happens if I have a claim?

You will need to register your claim with Quest Consulting who are handling claims against Lemma. Quest Consulting will then assess your claim to establish if you have a valid claim under your policy of insurance and if that claim is eligible for protection, compensation can then be paid as appropriate. Contact Quest Consulting at 52-54 Gracechurch Street, London EC3V 0EH, telephone 020 7015 8650.

Return to top

10. I had a claim being processed by Lemma. Will I have to start again and apply to FSCS?

Your claim is being assessed by Quest. Quest Consulting will notify FSCS when payment is due. FSCS will need to verify your eligibility to claim from us.  Please contact Quest Consulting at 52-54 Gracechurch Street, London EC3V 0EH, telephone 020 7015 8650.

Return to top

11. Should I cancel my policy now or make other arrangements?

We suggest you take advice before cancelling your policy. You should also take advice on making other arrangements to ensure you have insurance cover.

Return to top

12. I run a business and have a Lemma policy. Is my business covered?

FSCS protects individuals and small businesses. If your business had an annual turnover of less than £1m at the time that you purchased one of these policies we should be able to help you. Where we can help protection will be at 90% of the value of the claim under the policy (Protection is unlimited but if the policy contains a financial limit we have to apply that limit).
If you are a business that purchased compulsory Employers Liability cover, you will be protected for claims under that cover whatever your annual turnover.
We do not protect credit or goods in transit insurance.

Return to top

13. Does FSCS have the money to pay claims?

Yes.  Since 2001, FSCS has paid out more than £26bn to more than 4.5m people. The financial services industry funds us through a compulsory levy. We can levy the industry for the costs of claims.

Return to top

14. I cancelled my policy with Lemma a short while ago, can I make a claim?

Lemma was declared in default on 5th October 2012, if you cancelled your policy before this date we will not be able to help you.

Unfortunately, if you cancelled your policy before Lemma defaulted, FSCS will not be able to help you with any claims that occurred after the policy was cancelled. This is because you no longer have a valid insurance contract with the company.

Return to top

15. How long will it take to process my claim?

Each claim is assessed on its own particular circumstances. As such, we cannot say how long it will take to process your claim. However, FSCS will work with the provisional liquidators and Quest Consulting to ensure that outstanding claims are processed as quickly as possible.

Return to top

16. Who should I contact if I have a question about my policy?

Any queries relating to policies should be directed in the first instance to the provisional liquidators, Grant Thornton.

Return to top

17. I submitted a claim to Lemma and urgently need to settle it. Can you tell me what the status of my claim is?

Any queries relating to claims should be directed in the first instance to Quest Consulting on 020 7015 8650.   We will aim to pay hardship claims as a priority.

Return to top

18. Do I have to pay to claim compensation from FSCS?

We do not charge consumers for using our service.

Return to top

19. Do I need to use a third party to claim for compensation?

Consumers should be aware claiming compensation from FSCS is free and each application is judged on its individual merits. Some people may prefer to pay a third party to submit their claim for them.
Claims management companies can take a sizeable part of the possible compensation and are no more likely to make a successful claim than consumers can on their own.

Return to top

20. Do FSCS protect claims for loss of premium?

 

The policy wording will state the circumstances in which policyholders can cancel a policy and when a refund of premium can be paid. This may not be possible in all circumstances and you should check your policy wording.

In certain circumstances FSCS might be able to help with return of premium claims.  Where the policy allows a return of premium and the policy is properly cancelled by an eligible policyholder or the provisional liquidator (on behalf of the firm), then FSCS can protect the value of the unexpired premium. However, FSCS can only assist where eligible policy-holders cannot recover what they are owed by the firm.

If the policyholder paid for the premium with a credit card, they can ask the credit card company to reimburse them for their loss under Section 75 of the Consumer Credit Act 1974 for premiums payments between £100 and £30,000.  Policyholders should speak to their credit card company about whether they can help.
 

 

Return to top

21. How will I know how much premium I am due?

You should contact Grant Thornton’s the provisional liquidator who will calculate the value of your claim for loss of premium.

 

Return to top