Collapsed insurance firm Independent could have to pay out compensation to thousands of customers
Customers of collapsed insurer Independent Insurance have been told they could be in line for a small compensation payment.
Thousands of policyholders have been sent a letter outlining a plan to bring an end to a wait of nearly 14 years for compensation.
In June 2001, Independent Insurance went into provisional liquidation.
Payout: Customers of collapsed insurer Independent Insurance could qualify for compensation
The company — which had shown a £22million profit the year before — stopped trading and its shares were suspended.
Hundreds of jobs were lost and thousands of shareholders lost investments. Tens of thousands of customers who bought home and car insurance were left out of pocket.
They include those who lost a year’s premiums for cancelled insurance and others owed large cash sums for a claim never paid out.
An investigation by the Serious Fraud Office and City of London Police found evidence of claims data being withheld from the company’s actuaries. It ended with guilty verdicts and prison sentences for some executives.
Now a proposal in the letter by PricewaterhouseCoopers, the provisional liquidator, suggests making a 'dividend' payment to those still owed money.
This includes policyholders, creditors and brokers, who will be asked to vote on the deal. It estimates making a payment of between 10p and 15p for every pound owed.
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