Enterprise Insurance Company PLC Updates
Good news for Enterprise policyholders
“Motorway Direct and NCI Roadside Assistance have transferred 206,000 Enterprise policies to new insurers with effect from 14 December. FSCS has been working with these brokers to secure alternative insurance cover for their customers since the collapse of Enterprise Insurance.
The transfer comes as Enterprise’s liquidator cancelled around 200,000 policies sold by Motorway Direct and a further 6,000 policies sold by NCI Roadside Assistance in the Gibraltarian courts yesterday.
The policies include GAP, motor warranty, and household electronic goods warranties. The brokers will contact their customers to advise them of the transfers in the coming days.
FSCS Chief Executive, Mark Neale, says “This is good news for many thousands of Enterprise customers. They no longer need to worry that they do not have insurance in place. And we’re continuing to work with other brokers to secure continuity of cover for their customers where this is possible. This is the best result possible for consumers.”
FSCS has come to the aid of more than 4.5m people while paying out £26bn since 2001. It has already returned millions of pounds to Enterprise customers after the company went bust.
The Scheme protects insurance, deposits, investments and mortgage broking ”
Important Statement on Enterprise Insurance – 14 December 2016
We are now in the process of writing to all our customers affected by the liquidation of Enterprise Insurance (“EIC”) advising them that their policies will be disclaimed with effect from 14 December 2016. The letter outlines what we have been doing to ensure that policyholders do not suffer any detriment in this unfortunate circumstance.
Motorway Direct (“MWD“) is pleased to advise that it has arranged replacement policies with Amtrust International Underwriters DAC (“AIU”). These replacement policies will be issued automatically; with no changes to the policy terms and conditions and the service provided will be exactly the same.
We have added a Q&A section to our website that will be supplemented with further information as it arises. If your questions have not been answered, please contact us on 03300 555 875 or customerservices@motorwaydirect.co.uk.
David Antcliff
Chairman
MOTORWAY DIRECT PLC
14 December 2016 13:00
STATEMENT TO OUR APPOINTED DEALERS WHO HAVE GAP INSURANCE PROGRAMMES UNDERWRITTEN BY ENTERPRISE INSURANCE COMPANY (IN LIQUIDATION)
Following the Gibraltar Financial Services Commission’s (“GFSC”) intervention in the business of Enterprise Insurance Company (“EIC”), in July 2016, a Liquidator was appointed on 26 October 2016 in response to the Provisional Liquidator’s Report to the Gibraltar Court.
Within days of his (Freddie White of Grant Thornton) appointment, the Liquidator disclaimed all of EIC’s road risk insurance policies. This action caused some confusion, since the message was communicated in a way that led intermediaries and policyholders to assume that the EIC non-compulsory policies had also been cancelled. We made immediate representation about this, and a corrective statement was issued through the EIC and Financial Services Compensation Scheme (“FSCS”) websites. Motorway Direct has, on its website, mirrored the messages published by the authorised parties as they have presented.
We were successful in achieving the right to continue to handle claims, and we now have an established process which operates across all of our EIC programmes, including GAP and Warranty. Policyholder’s valid claims are being paid in a timely manner and, at the time of writing, circa £500,000 has been settled through the FSCS.
At this point, therefore, all of the EIC policies sold by our dealer network continue to be covered. Valid claims are being processed by us, and settled by the FSCS. The exception is policies sold on commercial vehicles, where the policyholder’s turnover was greater than £1M per annum at the time of purchase.
Confusion has arisen, as a result of letters issued recently (11 November) by the Liquidator informing all policyholders of his appointment and confirming that EIC is insolvent. He had a statutory obligation to communicate this message. We (Motorway Direct) neither had notification of nor input into the letter. We can see why customers were worried, given the official “jargon” used in it. We fielded a specific customer services team during last weekend to handle questions from policyholders and dealers. Out of around 85 calls, we found that once the primary concern, being “am I covered?” was dealt with, the problem went away with a “thank you for your help”.
We have spoken to the Liquidator’s agents and the FSCS about the poor way in which this communication has been made. We have been told that the Liquidator will publish a statement to position his appointment in relation to the current process of policy validity and claims acceptance.
Turning to the likely next step
We believe that the Liquidator is assessing two potential options.
- He may disclaim our book of business in which case:
- We are working closely with the Liquidator, his agents, the FSCS and AmTrust International (an AM Best “A” rated carrier) to be in a position to offer policyholders replacement cover on a “like for like” basis at no cost. Therefore, leaving the customer in the same position as before the EIC collapse.
- If the Liquidator chooses this route we envisage that he will write a letter of disclaim and, at the same time, we will introduce the replacement cover offer.
- The policyholder will be allowed 14 days (cooling off) to decide whether to accept the offer or, to have a refund of premium on a pro-rata time on risk basis, less a deduction of 10% through the FSCS.
- The Liquidator may decide to continue to meet claims on either the whole or part of Motorway Direct’s book of business.
We do stress that both of the above options must be treated as speculative at this time.
In the interests of speed of communication, we took the decision in July to deliver messages about this issue via our website (www.motorwaydirect.co.uk). We are able to control the accuracy of what’s being said and avoid any over promising of outcome. Of course, we will deal with any specific request for information channelled through your Representative to the office.
David Antcliff
Chairman
MOTORWAY DIRECT PLC
25 November 2016
Re: Grant Thornton letter to policyholder (11/11/2016)
As part of their statutory obligations, Grant Thornton have written to all EIC policyholders to confirm their appointment as Liquidator.
For clarification, whilst it is likely that the Liquidator will eventually disclaim all non-compulsory EIC Insurance products, both Grant Thornton and FSCS have confirmed that EIC policies arranged through Motorway Direct plc and/or its subsidiaries are still valid, with claims continuing to be administered by Motorway Direct plc under the compensation scheme until further notice.
Further information can be found at: FSC.gi
David Antcliff
CHAIRMAN
11.30 on Friday 18/11/2016
Update from Wednesday 26 October 2016
Please see below the formal notification of the appointment of a Liquidator of Enterprise Insurance Company plc, and clarification on which policies are to be disclaimed.
For the avoidance of doubt, the Liquidator has confirmed to us that any Gap and Warranty policies arranged through Motorway Direct plc and/or its subsidiaries are still under review so, on these claims, will continue to be processed under the compensation scheme until further notice.
Further information can be found at: FSC.gi
David Antcliff
CHAIRMAN
12:15 on Wednesday 26 October 2016
Enterprise Insurance Company update, Wednesday 26th October
The Supreme Court of Gibraltar has today, 26 October 2016, appointed Mr Freddie White of Grant Thornton (Gibraltar) Limited as Liquidator of Enterprise. The Court considered the report of Mr White as Provisional Liquidator which set out his findings that the company is insolvent and his recommendation that a Liquidator be appointed.
The Liquidator will now begin the process of winding up the company under the supervision of the GFSC. He will be notifying all creditors of EIC of his appointment. He will be considering claims and whether these may be paid by the company.
The Liquidator has today disclaimed all Enterprise motor insurance policies. This means that as from midnight today, 26 October 2016, all Enterprise motor policies are no longer effective. Policyholders can no longer rely on their Enterprise Insurance policies to support their right to drive. Policyholders will be considered as driving without insurance. Policyholders that do not have alternative cover are advised to contact their brokers immediately.
Mr White is in contact with the compensation schemes in the various countries in which Enterprise wrote business to coordinate with them the processes by which eligible claims may be paid from the schemes. We will update our website with further information regarding these processes as it becomes available.
You can still email the Liquidator and his team at info@eigplc.com or you can call them on 00350 200 50150.
Notice to all Brokers of Enterprise Insurance Company plc
Further to my notice to brokers issued on 30th September 2016 I can confirm that the only policies of insurance it is intended to disclaim on 26th October are policies of motor insurance.
Frederick White
Provisional Liquidator
Enterprise Insurance Company plc
18th October 2016.
Notice to all brokers of EIC Plc 18/10/16
Warning from the Provisional Liquidator to United Kingdom Policyholders
It has been brought to my attention that fraudsters may be attempting to contact Enterprise policyholders in the United Kingdom, pretending to represent the Financial Services Compensation Scheme (“FSCS”) and requesting a payment of £300.00 to be made as an administration fee for processing their claim with the compensation scheme.
Please be advised that no fees or other costs are payable by a policyholder to enable them to apply for compensation from the FSCS. As part of the provisional liquidation process, I have put arrangements in place whereby eligible policyholders’ information is processed and passed to the FSCS by Claims Consulting Services Ltd in relation to United Kingdom policyholder motor claims and by Quest Consulting Ltd for all other United Kingdom policyholder claims.
If a policyholder has any queries regarding the FSCS application process please contact Paul Hafner of Quest Consulting on PHafner@quest-group.co.uk.
Communication from the Provisional Liquidator of Enterprise Insurance Company plc on 31st August 2016
On the 25th July 2016 the Gibraltar Supreme Court appointed me as Provisional Liquidator of Enterprise Insurance Company plc (“Enterprise” or the “Company”).
I am now managing the Company’s affairs under the supervision of the Gibraltar Financial Services Commission and will report back to the Supreme Court within three months.
Insurance policies issued by Enterprise have not been cancelled or disclaimed but I am unable to currently pay any claims arising under such policies. It is also uncertain if the Company’s assets will be sufficient to meet insurance claims in full.
In these circumstances it is advisable for policy holders to contact their brokers.
I am in contact with the compensation schemes in the various countries in which Enterprise wrote business to coordinate with them the processes by which eligible claims may be paid from the schemes. I will update this website with further information regarding these processes as it becomes available.
I am making arrangements for claims managers to continue to administer, process and agree claims for admission as insurance claims and for submission to compensation schemes as applicable. Policyholders should continue to notify claims in accordance with the details set out in their policy documents.
Any queries from policy holders or others may be directed to info@eigplc.com or by telephone at number +350 200 50150
United Kingdom Policy HoldersAll policyholders with claims arising should continue to notify such claims in accordance with the contact details set out in their policy documents.
Claims Consulting Solutions Ltd (“CCSL”) continues to manage claims arising under policies of motor insurance. Claims arising under such policies should be notified to them at:
Claims Consulting Solutions Ltd
20, St Marys Parsonage
8th Floor
Cardinal House
Manchester
M3 2LYTelephone: 0330 102 6986
Fax: 0845 643 6661
Email: info@claims-consulting.co.ukThe Financial Services Compensation Scheme (“FSCS”) has worked closely with me to facilitate the process whereby eligible policyholders may claim upon the compensation scheme. CCSL will process eligible claims for submission to the FSCS and third party compensation payments have been made already. It is hoped that own damage compensation payments may commence this week.
Motorway Direct PLC continues to process claims arising in respect of the following classes of business:
GAP Insurance
Motor Warranty
Brown and White Goods WarrantyMotorway Direct PLC contact details are:
Telephone: 03300 555 262
Email: Customerservices@motorwaydirect.co.ukI am working with the claims managers of these and other business classes to establish the process of submission of eligible claims to the FSCS. Further details will be added to this website in due course.
Information regarding the Financial Services Compensation Scheme may be obtained at the FSCS website.
All PolicyholdersEnterprise insurance policies were distributed via a network of brokers in the United Kingdom, Republic of Ireland, France, Italy, Greece and Norway. Contact details of policy holders are held by brokers. I have written to brokers requesting them to pass on a notice from me as Provisional Liquidator to all policy holders. These notices are included on this website in the language of the country of the policyholders. Circumstances relating to the operation of compensation schemes differ in the various countries and policyholders should ensure they read the notice addressed to the policyholders of their respective country.
Warning from the Gibraltar Financial Services CommissionThe Gibraltar Financial Services Commission has issued a warning regarding an Enterprise Insurance Claim website. This warning is repeated in full below:
“The Gibraltar Financial Services Commission (GFSC) is today issuing the following warning to the public regarding the website enterpriseinsuranceclaim.com. This website purports to offer assistance with claims against Enterprise Insurance Company Plc which is currently in provisional liquidation.
The website contains false and misleading information regarding the validity of Enterprise insurance policies and the position of policy holders while the company is in provisional liquidation. The GFSC is also concerned about the legitimacy of the website and the purpose for which subscriber information will be used.
The website is operated by a Gibraltar registered company, DFM Services Limited. This company is not regulated, registered or otherwise authorised by the GFSC. The website’s Contact page does not provide an address or telephone contact number and the website does not refer to DFM Services Limited at all.
The GFSC has contacted the company’s sole shareholder and director but remains dissatisfied with the explanations provided in terms of the legitimacy of the website.
The GFSC therefore urges the public to exercise appropriate caution in respect of this website. Policy holders should not rely on statements contained on this website but should instead refer to information issued by the GFSC and the Provisional Liquidator.
Any persons who are already involved in any dealings with the above entity and have concerns, should contact our Enforcement division on +350 200 40283 or by e-mail toenforcement@fsc.gi.”
Frederick White
Provisional Liquidator
Enterprise Insurance Company plc
Communication from the Provisional Liquidator of Enterprise Insurance Company plc on 8 August 2016
“On the 25th July 2016 the Gibraltar Supreme Court appointed me as Provisional Liquidator of Enterprise Insurance Company plc (“Enterprise or the “Company”).
I am now managing the Company’s affairs under the supervision of the Gibraltar Financial Services Commission and will report back to the Supreme Court within three months.
Insurance policies issued by Enterprise have not been cancelled or disclaimed but I am unable to currently pay any claims arising under such policies. It is also uncertain if the Company’s assets will be sufficient to meet insurance claims in full.
In these circumstances it is advisable for policy holders to contact their brokers.
I am in contact with the compensation schemes in the various countries in which Enterprise wrote business to coordinate with them the processes by which eligible claims may be paid from the schemes. I will update this website with further information regarding these processes as it becomes available.
I am making arrangements for claims managers to continue to administer, process and agree claims for admission as insurance claims and for submission to compensation schemes as applicable. Policyholders should continue to notify claims in accordance with the details set out in their policy documents.
Any queries from policy holders or others may be directed to info@eigplc.com
or by telephone at number +350 200 50150
United Kingdom Policy Holders
All policyholders with claims arising should continue to notify such claims in accordance with the contact details set out in their policy documents.
Claims Consulting Solutions Ltd (“CCSL”) continues to manage claims arising under policies of motor insurance. Claims arising under such policies should be notified to them at:
Claims Consulting Solutions Ltd
20, St Marys Parsonage
8th Floor
Cardinal House
Manchester
M3 2LY
Telephone: 0330 102 6986
Fax : 0845 643 6661
Email: info@claims-consulting.co.uk
The Financial Services Compensation Scheme (“FSCS”) has worked closely with me to facilitate the process whereby eligible policyholders may claim upon the compensation scheme. CCSL will process eligible claims for submission to the FSCS and third party compensation payments have been made already. It is hoped that own damage compensation payments may commence this week.
Motorway Direct PLC continues to process claims arising in respect of the following classes of business:
GAP Insurance
Motor Warranty
Brown and White Goods Warranty
Motorway Direct PLC contact details are: Telephone 03300 555 262 or
Email Customerservices@motorwaydirect.co.uk
I am working with the claims managers of these and other business classes to establish the process of submission of eligible claims to the FSCS. Further details will be added to this website in due course.
Information regarding the Financial Services Compensation Scheme may be obtained at the FSCS website www.fscs.org.uk
Frederick White
Provisional Liquidator
Enterprise Insurance Company plc”
Communication from the Provisional Liquidator of Enterprise Insurance Company plc on 29th July 2016
United Kingdom Policy Holders
I can confirm that Motorway Direct PLC has been appointed as one of the claims management companies assisting me in the processing of claims in respect of the following classes of business:
GAP Insurance
Motor Warranty
Brown and White Goods Warranty
Motorway Direct PLC contact details are: Telephone 03300 555 262 or
Email customerservices@motorwaydirect.co.uk
Information regarding the Financial Services Compensation Scheme may be obtained at the FSCS website
Frederick White
Provisional Liquidator
Enterprise Insurance Company plc
Date: 29 July 2016 – Statement on Enterprise Insurance Company PLC
Enterprise Insurance Company PLC (“EIC”) is one of several suppliers of underwriting capacity to Motorway Direct PLC. We are monitoring the, still developing, on-going situation with EIC and what it means for the proportion of our customers that could be affected.
We are in positive and on-going dialogue with the provisional liquidator of EIC, and we will work with them to protect our customer’s interests. It is still unclear as to what the potential, but yet to be confirmed liquidation of EIC, could mean to those of our policyholders that hold EIC underwritten polices.
Going forward, we have replaced our EIC product range, on a like for like basis, with AmTrust International, an “A” rated insurer. We have done this seamlessly and all our systems have been updated.
We remain committed to delivering a first class service and we undertake to keep you advised as we progress through this difficult time for the customers that could be affected.
Additional information, as it becomes available, can be found direct from the Motorway Direct PLC website: www.motorwaydirect.co.uk
David Antcliff
CHAIRMAN
16:20 on Friday 29 July 2016
Communication from the Provisional Liquidator of Enterprise Insurance Company plc on 28th July 2016
“On the 25th July 2016 the Gibraltar Supreme Court appointed me as Provisional Liquidator of Enterprise Insurance Company plc (“Enterprise or the “Company”).
I am now managing the Company’s affairs under the supervision of the Gibraltar Financial Services Commission and will report back to the Supreme Court within three months.
Insurance policies issued by Enterprise have not been cancelled or disclaimed but I am unable to currently pay any claims arising under such policies. It is also uncertain if the Company’s assets will be sufficient to meet insurance claims in full.
In these circumstances it is advisable for policy holders to contact their brokers to arrange alternative insurance cover.
I am in contact with the compensation schemes in the various countries in which Enterprise wrote business to coordinate with them the processes by which eligible claims may be paid from the schemes. I will update this website with further information regarding these processes as it becomes available.
I am also engaging claims managers to continue to administer, process and agree claims for admission as insurance claims and for submission to compensation schemes as applicable. Contact details of my claims managers will be added to this website shortly.
You can find answers to the most common questions, or you can ask us a specific question by clicking here: Q & A section.
Alternatively you can email us on info@eigplc.com or call us on 00350 200 50150″
Date: 27 July – Further Update on Enterprise Insurance Company PLC from Gibraltar Financial Services Commission
“The Gibraltar Financial Services Commission (GFSC) continues to take steps to manage the failure of Enterprise Insurance Company PLC (‘Enterprise’ or the ‘Company’).
On Monday the GFSC issued court proceedings to have the Company managed by an independent and skilled insolvency specialist, and the Gibraltar Supreme Court appointed Mr Frederick White as Provisional Liquidator.
The Provisional Liquidator will explore options for transfer of policies, protection of assets and any other steps that can best protect the position of policyholders, including the continued processing of claims and continued validity of policies. The Provisional Liquidator is required to report back to the court within 3 months.
Mr White will now be managing the Company’s affairs under the supervision of the GFSC. He will be working with the Enterprise staff and claims operations to ensure that the insurance business continues to operate. This includes managing and processing all claims; this applies to claims arising in each of the countries that Enterprise operates in.
Mr White will be contacting all policyholders to notify them of his appointment and what happens now. He will be talking directly to each of Enterprise’s brokers over the course of this week.
Whilst claims will be processed, Enterprise is not able to pay any claims at this stage. In those countries where compensation schemes operate, claims will be considered by those schemes.
Peter Taylor, Director of Legal, Enforcement and Policy said: “The Company cannot make any payments under an Enterprise insurance policy, whether motor insurance or otherwise. The positions will be managed with the different compensation schemes that apply. We reiterate that all policies remain valid. Enterprise motor insurance policyholders can still legally drive under these policies. If an accident occurs and a claim is made, Enterprise cannot make any payment against that claim at this stage. We are working with our fellow European regulators and the various compensation bodies to ensure that policyholders’ interests are looked after”.
Enterprise will continue to process claims through its claims management agents. Mr White will be taking steps to ensure that Enterprise’s assets are secured and available to meet policyholders’ claims. We will do what we can to minimise any impact on the insurance compensation schemes that operate in the various countries involved.
Policyholders and brokers can now access further information and contact details through the Enterprise website. This is now managed and operated through Mr White as Provisional Liquidator.
You can contact Enterprise Insurance at info@eigplc.com”
Date: 26 July – Update on Enterprise Insurance Company PLC from Gibraltar Financial Services Commission
“On 25 July 2016 the Gibraltar Financial Services Commission (the Commission) applied to the Supreme Court of Gibraltar for the appointment of a Provisional Liquidator.
The Supreme Court of Gibraltar heard the application and appointed Mr. Frederick David John White of Grant Thornton (Gibraltar) Limited as Provisional Liquidator of Enterprise Insurance Company Plc.
The main responsibilities of the Provisional Liquidator are to protect the assets of the company and to establish its financial position. The Provisional Liquidator, together with the support of the Commission, will focus all efforts in to dealing with claims and will work alongside the relevant compensation schemes with the view of achieving the best possible outcome for policy holders.”
http://www.fsc.gi/fsc/EnterpriseStatement.htm
Date: 25 July 2016 – Statement on Enterprise Insurance Company PLC
• You may have heard the news that Enterprise Insurance Company (“EIC”) has received a notice of direction from the Gibraltar Financial Services Commission to cease entering into new contracts of insurance.
• Your business relationship with us (Motorway Direct) may include the provision of underwriting by EIC. If you market products that are insured by EIC, then you must not continue to sell them.
• We have, as you may be aware, several suppliers of underwriting capacity and there is already in place an agreement to replace our current EIC product range, on a like for like basis, with Amtrust International, an “A” rated insurer.
• So far as customer outcomes are concerned, I can confirm that Gibraltar insurance companies are, through “passporting” arrangements, included within the same compensation schemes as the UK regulatory system.
• Our policy registration system has been updated, so that any policies issued will now be with the new underwriter. The policy wordings should, therefore, be issued using the print on demand or e-mail facility that is available on the policy registration site.
• We remain committed to delivering a first class service to you and your customers and we undertake to keep you advised as we progress through this difficult time.
David Antcliff
CHAIRMAN
15:18 on Saturday 23 July 2016
Specific questions relating to the situation with Enterprise Insurance plc, can be direct to:
For Customers: 03300 555 875
customerservices@motorwaydirect.co.uk
For Dealers/Brokers: 03300 555 876
dealersupport@motorwaydirect.co.uk
Additional information, as it becomes available, can be found direct from Enterprise Insurance Website https://www.eigplc.com/index.php
