Important Communication Regarding Enterprise Insurance Company PLC
Original Article: Enterprise Insurance Enter Liquidation
On the 26th October a hearing will take place in which the Provisional Liquidator of Enterprise Insurance Company plc will present a report and recommendations to the situation. The statement includes the following:
“To prevent the continued accrual of liabilities on an insolvent estate I intend to disclaim all insurance contracts as onerous contracts and to file notices of disclaimer with the effective date being 26th October. The purpose of giving you advance notice of this is to enable you to arrange alternative insurance for your client policyholders as the effect of such disclaimer is to terminate or end all contracts of insurance so disclaimed and means that policyholders will no longer from that date hold a valid policy of insurance in the absence of arranging alternative cover.”
This means that anyone who has a policy in force with Enterprise Insurance will need to find alternative cover as it is the intent of the Provisional Liquidator to effectively cancel all policies on the 26th of October 2016. Here at Connect Insurance Brokers we have contacted all affected policyholders directly through a range of mediums including post and email. Anyone who still holds a policy with Enterprise should replace their business before October 26th 2016 or you will run the risk of having your insurance contract terminated and ultimately being left uninsured.
Enterprise have published the following Q&A on their website; we have briefly summarised some of the key points below:
I am an existing policyholder, what happens to my policy?
Presently your policy remains in force, however if the Provisional Liquidator has their disclaimer upheld then your insurance will be terminated on October 26th. If you have not replaced your business elsewhere and your policy is cancelled on the 26th as a result of the disclaimer, you will be left uninsured.
As an existing policyholder, do I need to take any action?
You will now need to find alternative cover with another insurance company commencing on the 26th of October in order to be fully covered. Contact us now regarding this if you haven’t already heard from ourselves.
Can I cancel my motor policy with EIC? Do I have a right to a refund of my premium?
All terms and conditions of existing policies remain applicable; check you policy documentation in relation to cancellations. Individual policyholders should take their own advice as to their next course of action, taking into account the provisions of local compensation schemes. Individual policyholders should remain aware that their policies remain in force until further notice. If you cancel your policy and are entitled to return of premium, please proceed with this claim with Enterprise Insurance Company Plc. Enterprise cannot make any payment at this stage.
I have an existing claim, what happens to this?
If you haven’t already submitted a claim, please submit your claim to Enterprise Insurance Company Plc. Enterprise Insurance Company Plc will be processing claims as usual, please refer to your policy documentation.
I want to make a new claim, what should I do now?
Please direct any enquiries to the claims number in your policy documentation.
Connect Insurance would like to again reassure our clients that Enterprise Insurance are covered by the Financial Services Compensation Scheme (FSCS) who are already reviewing the situation as it unfolds. Thank you to our clients for being patient with us during this period of uncertainty, we will continue to keep you updated when new information becomes available.
Sources: Financial Services Commission official Enterprise Statement