Premier Insurance Company Ltd, which underwrote policies for around 16,000 car and van drivers, has gone bust
Major insurance firm collapses into administration – with 16,000 drivers at risk(Image: )
Drivers have lost their car insurance – after a major insurer went bust earlier this year. Premier Insurance Company Ltd, which underwrote policies for around 16,000 car and van drivers, collapsed into administration in October.
The Financial Conduct Authority (FCA) warned the firm’s customers, who are mostly based in the UK, will no longer be covered. Sarah Marin, chief customer officer at the Financial Services Compensation Scheme (FSCS), said: “We understand customers will be worried about how Premier Insurance Company Limited’s failure will affect their motor insurance policies.
“We’d like to reassure customers that FCFS is working closely with the Insolvency Practitioner, Grant Thornton (Gibraltar) to make sure all eligible UK policyholders are protected.
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“FSCS will also protect eligible firms with an annual turnover of less than £1m. Premier Insurance Company Limited customers can be assured that their claims will continue to be considered against the terms of their policy.”
FSCS has been working closely with the regulators and other related partners to monitor the situation and make sure the impact on customers and industry levy payers is reduced. FSCS will continue to monitor developments and will provide updates on its website as things progress.
Customers who are unclear if their insurance policy was underwritten by Premier Insurance Company Limited should contact the insurance broker that sold the policy to them.
The FSCS said: “All car, van and motorbike policyholders – if you’ve had notice that your insurance policy will end, you will need to have alternative insurance in place before that date.
“Motor insurance is compulsory – it’s an offence to use your vehicle without it. You may wish to discuss alternative cover with your broker.
“If you’re unsure, talk to an insurance broker who specialises in motor insurance policies about replacement cover. You can find one via the British Insurance Brokers’ Association’s ‘Find Insurance’ service, or call them on 0370 950 1790.
“You can see the original Joint Administrators’ notification on Premier’s website. The MoneyHelper site also contains useful information on insurance cover.”
