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.
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