MCE Insurance disclaims policies
Gibraltar based Green Realisations 123 Ltd. (formerly MCE Insurance Company Limited) intends to disclaim all its motorcycle and scooter policies at midnight, Monday January 31.
Underwriters MCE IC Ltd’s permission to write insurance was suspended on November 5, 2021, and on 19 November, 2021, the company was placed in administration.
It is the administrators, Kroll, who have announced the intention to disclaim all policies after examining the financial position of the company. Kroll had already announced their intention to disclaim van policies by January 14.
All existing policies previously underwritten by MCE IC Ltd. will run until January 31 as normal, however no adjustments will now be permitted.
Customers who have paid for their policy in full, or who have paid a monthly amount that takes them past January 31, could be eligible for a refund of up to 90% of the unused portion of the policy from the Financial Services Compensation Scheme.
The broker MCE UK is unaffected by the announcement, so they are still able to arrange insurance cover with a different underwriter. Policies taken out after November 5 are unwritten by a different company, Sabre, and are also unaffected.
Claimants could lose out in insurance administration
First published on 27 October 2021 by Dan Sutherland
MCN has learned that bikers who were insured by the insolvent MCE Insurance Company Ltd (MICL) will only have 90% of the value of the claims paid by the Financial Compensation Services Scheme (FSCS). Gibraltar based MICL were an underwriter that insured people through the UK-based MCE Insurance Ltd (MIL), which is still trading.
On November 5, 2021 MICL were instructed to cease underwriting new business then on November 19 the company was placed in administration. Once MICL went into administration the FSCS, which operates a fund of last resort, became responsible for paying any claims.
However, under the FSCS standard terms of operation, first party claimants are only protected to 90%, while third party claims are 100%.
That means if you had a claim, such as a complete write off or for theft, you’d lose 10% of the value of the claim, on top of any compulsory or voluntary excess. For some of the riders who were insured by MICL this could equate to a loss in the thousands.
It also might not be the fastest process, with the FSCS saying that 80% of the general claims take over seven months to complete.
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