PracticeConsultingIndependent policies to be cancelled

Independent policies to be cancelled

Provisional liquidators from PricewaterhouseCoopers have issued cancellation notices for the majority of the policyholders at Independent Insurance, the insurer which collapsed last month.

Most of these policies have provisions which normally allow for cancellation seven or 30 days from the date of notification, according to provisional liquidators Mark Batten and Dan Schwarzmann.

Batten and Schwarzmann also said policyholders who receive the notices may qualify for protection from the Policyholders Protection Board in respect of return of premium entitlement in their policies.

‘This is a very important letter for policyholders as it serves as notification that their policy is soon to be terminated. It is imperative that policyholders who receive this letter seek alternative insurance cover where appropriate,’ said Schwarzmann.Independent entered voluntary liquidation following the decision to suspend its shares and stop writing new business. Forensic accountants from PwC are conducting an investigation into the collapse.

The cancellation of policies reduces uncertainty over the future levels of claims which would otherwise be incurred and helps protect the interests of Independent creditors.

Meanwhile at least three former directors of Independent are to join the class action being organised by the Creditors of Independent Insurance Group. The action now includes an estimated 2,000 people and is being advised by City law firm Class Law.

According to the Insurance Times, former directors have lost large sums of money as a result of Independent’s break-up.

And Stephen Alexander from Class Law said evidence was emerging in ‘bucketfuls’ about Independent, indicating that the activities which brought down the insurer had been going on for months or even years, as reported.

Links

PI premiums hit by Independent fall

Independent arm sold for Pounds 3m

Independent auditor slammed by MP

Taking Stock – Maxwellian tragedy

KPMG target for Independent creditors

Independent collapse hits indemnity cover

ICAEW to investigate insurer’s collapse

Independent FD unaware of contracts

Liquidators appointed at Independent

SFO called to probe Independent

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer