We write with reference to any Motor Insurance Policy with Midas, underwritten by Enterprise Insurance Company PLC (EIC).
Unfortunately, on the 22nd July 2016 it was announced that the Gibraltar Financial Services Commission (GFSC) issued notice of direction to EIC to cease entering into any new contracts of insurance in order to protect the interests of their existing policyholders. The GFSC have issued court proceedings to have EIC managed by an independent and skilled insolvency specialist and the Gibraltar Supreme Court appointed a Provisional Liquidator.
What Does This Mean For You?
We confirm that all policies remain valid and in force. 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 reiterate that this situation does not in any way cancel or terminate any existing contract of insurance.
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 – Enterprise staff will be retained. The Provisional Liquidator is required to report back to the court within 3 months.
Financial Services Compensation Scheme Coverage
Insurance contracts for individuals are covered by the FSCS (Financial Services Compensation Scheme)*. The FSCS has declared Enterprise Insurance Company PLC in default, and is working closely with the liquidator, and the Financial Services Commission in Gibraltar, where Enterprise is based, to establish the best way to help its policyholders. Enterprise is permitted to conduct business in the UK.
If the FSCS establishes Enterprise cannot meet the cost of claims made against it, they will protect certain UK policyholders. In the unfortunate event of you needing to make a new claim please direct any enquiries to the claims number in your policy documentation. The FSCS will only consider paying compensation once they are sure that the firm cannot pay their own claims. This means the liquidator needs to do their due diligence before they can declare the firm in default and pay claims.
Enterprise Insurance Company Policy Restrictions
As a direct result, we are no longer able to issue any new policies on behalf of EIC or offer renewal on any existing EIC contract. Also, we can make no alterations at all to any EIC policy. For example, these will include any change of vehicle, additional drivers, change of address, etc.
We have been seeking as much information as possible from all parties involved and working to find the best solutions for our customers, including replacement cover if necessary.
The following therefore applies to any claims made on your policy:
- You are covered for any damage caused to a 3rd Party
- Any Non-Fault claim you have will be directed to the 3rd Party Insurance Company and settled directly through them
- Any Own Damage claims will be processed in the usual way but you will need to use the EIC Claim Company (Claims Consulting Solutions Ltd) and their Approved Repairer. They will arrange repairs and will claim directly from the FSCS for you (for 90%), but this will mean you will need to pay the remainder (10%). This is the net amount after deduction of the Policy Excess. Their contact number is 0330 102 7048.
- Should you choose to use your own Accident Repairer then you will have to pay in full for that claim and claim back 90% from the FSCS. We have been informed that this can take up to 6 months.
We obviously regret the current position but believe that Midas Insurance are endeavouring to remedy the situation in the best way possible. Midas have also set up a helpline which operates from 9am to 5pm, Monday to Friday – 0330 123 5745.
Individual circumstances will dictate as to whether or not the best course of action to be taken is to either cancel the existing policy, or remain with the current insurer. However, we cannot at present confirm any refund of premiums via the FSCS.
We’re Here To Help
You may wish to contact us to clarify matters and your account manager will be happy to discuss more with you. Please note that they will no doubt be very busy with enquiries but will endeavour to deal with your policy as a priority.
You can reach your account manager via contact details available on this page.
You may also find the following websites useful which have links to relevant pages:
Keith Michaels plc, 4th August 2016
(*) As a private individual the FSCS will compensate 90% of any ‘valid’ loss you suffer.