FSCS has been working with MIB (Motor Insurers’ Bureau) who are identifying former Enterprise Insurance motor policyholders who have not found new insurance policies following the collapse of the company. Consumers who have not updated their policies could be putting themselves and others at risk.
Since the liquidator disclaimed (cancelled) the policies on 26 October, drivers are no longer insured unless they (or their broker) arranged alternative cover. And FSCS cannot protect Enterprise insurance claims where an accident occurred after that date. Thousands of policyholders were affected by the disclaiming of these policies, and FSCS has made approximately 19,500 payments on policyholders’ claims since that time.
MIB, which compensates the victims of uninsured driving and assists the police and DVLA with insurance enforcement, has reviewed the insurance records held on the Motor Insurance Database (MID). MIB has written to those identified individuals who have not yet updated their policy, to remind them to buy an insurance policy with a new insurer as soon as possible. On Monday 7 November MIB wrote to11,500 motorists who, it appeared from reviewing the records on the MID, were yet to take action and update their insurance, or the record on the database, with a new provider. Some of these motorists may be unknowingly driving without insurance.
FSCS Chief Executive, Mark Neale says: “We have been working hard to pay claims by Enterprise motor policyholders since the policies were cancelled. It is concerning to learn from MIB that there are still policyholders who have not changed their insurance provider. I would strongly advise consumers to check their policy documents and speak to their broker as a matter of urgency.”
Ashton West OBE, Chief Executive at MIB said, “It’s essential that all motorists not only have insurance, but that it’s recorded on the MID as soon as possible. This means that they won’t be subject to any enforcement by the police and DVLA. It is illegal to drive without insurance and the consequences are very serious.”