As many as 250,000 policy holders will be left affected by the liquidation of Enterprise Insurance Company PLC.
Holders of motor insurance will all find their policies terminated as of 26th October 2016, leaving them without cover. The Gibraltar Financial Services Commission issued a statement advising all policy holders to act to find new insurance cover before 26th October as, after that date Enterprise motor insurance policies will no longer be valid.
For anyone with a motor insurance policy this is key, as after 26th October they will no longer be able to legally drive under these policies.
For people with GAP Insurance, Professional Indemnity Insurance and Warranty cover no decision has yet been made and so they are left in an uncertain position.
For GAP Insurance policy holders this is particularly frustrating, as GAP cover can only be purchased for a limited time after taking delivery of a vehicle. For consumers who have owned their cars for more than 365 days, it could be impossible to find a replacement policy.
The provisional liquidator will pass his full report onto the court on October 26th and they will make their decision as to how matters will proceed.
Enterprise Insurance Company was instructed to stop accepting new business in mid-July of this year by the Gibraltar Financial Services Commission, when the company admitted to being insolvent.
Although there was originally an expectation that any policies underwritten by Enterprise Insurance Company would be honoured, they have also been instructed not to pay any claims settlements at this time. However, the FSCS has confirmed that it will meet the cost of claims where Enterprise is unable to do so.
Click here to read more News at ALA Connect.