Enterprise Insurance has folded, with over 14,000 Irish Customers

Fred Swanson

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ASOT

Fred Swanson wrote: »

That is what the law says on the matter.

When Seatanta went to the wall the same applied. But there was a race on by motorists to get insurance in place before the cancellation letter issued as they would have a policy cancellation on record that would make them uninsurable.

That's just ridiculous, theres a massive difference between a policy being cancelled for non disclosure etc than a policy being a cancelled by a company going under. Scaremongering at its finest.

Fred Swanson

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ASOT

Fred Swanson wrote: »

Nope, many of Setantas victims became uninsurable once their policies were cancelled. The reason why it was cancelled was of no interest to the other companies.

I still think your talking bollox, the cancellation is very much of interest to the company I work for and I would imagine every other company.

bren2002

Punter here.

According to their website all polices are still in force.
Is that insurance cancellation matter really a thing? Or is it scare mongering ?
What's the story with no claims certs for moving business?

B.

FishOnABike

Fred Swanson wrote: »

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Where would you stand if that notice was not received e.g. if you were away on holiday, with your car or with your car parked at the airport, when registered delivery was attempted or if someone else signed for it?

GM228

Cookie_Monster wrote: »

You can do that, just like Dublin Bus for example. Of course you do need a spare 10 millions or so as a bond

Just a side note on that point, Dublin Bus (and all the CIE companies) are actually insured externally but subject to a €15,000,000 self-insurance retention.

Del2005

Fred Swanson wrote: »

You are covered until they formally cancel your policy by giving 10 days notice by registered post.

The company doesn't have any money so they can't pay any claims, whether you're policy is valid doesn't really matter when there is no indemnity.

Del2005

FishOnABike wrote: »

Where would you stand if that notice was not received e.g. if you were away on holiday, with your car or with your car parked at the airport, when registered delivery was attempted or if someone else signed for it?

You would be driving uninsured.

Fred Swanson

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Fred Swanson

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cailinoBAC

I wonder if they are actually insolvent in the normal sense or if they have fallen below the much stricter margins needed under the new solvency ii rules in force since the start of the year. Possibly they passed the test under the old rules in December but when it got to submitting the new results in May they had to hold their hands up and say they couldn't. Per the new rules everywhere in Europe would be subject the same (mostly higher)solvency requirements. A lot of insurance companies would have been frantically looking around for new capital at the end of last year and they obviously didn't get it. Hopefully this is the case and they'll be able to pay out on current claims, let current policies run off and just wind up business in a normal manner rather than what happened in the case of setanta. I can't really tell from the fsc.gi website if this is the case though.

bazz26

This is another example of how mickey mouse business ethics and laughable regulations are practiced in this little Banana Republic of ours, along with an inheritable lack of accountability from all involved. They just kick the can down the road until it lands at the feet of either the consumer or taxpayer. This crowd will just either end up doing what Setanta did recently where the MIBI will be told to suck up any claim costs and in turn pass it on to consumers or like Quinn/PMPA the Government will slap another levy on your premium.

ThisRegard

bazz26 wrote: »

This is another example of how mickey mouse business ethics and laughable regulations are practiced in this little Banana Republic of ours, along with an inheritable lack of accountability from all involved. They just kick the can down the road until it lands at the feet of either the consumer or taxpayer. This crowd will just either end up doing what Setanta did recently where the MIBI will be told to suck up any claim costs and in turn pass it on to consumers or like Quinn/PMPA the Government will slap another levy on your premium.

Read up on the company. They're in operation in a number of other countries too. Less of the banana republic shtick.

bazz26

ThisRegard wrote: »

Read up on the company. They're in operation in a number of other countries too. Less of the banana republic shtick.

So were Setanta, what's your point?

Del2005

bazz26 wrote: »

So were Setanta, what's your point?

IIRC Setanta where a Maltese registered company solely providing insurance in Ireland. Enterprise are registered in Gibraltar providing insurance in several EU counties, is France also a banana Republic?

bazz26

Del2005 wrote: »

IIRC Setanta where a Maltese registered company solely providing insurance in Ireland. Enterprise are registered in Gibraltar providing insurance in several EU counties, is France also a banana Republic?

Ok but do France add a levy to everyone's insurance premium to cover the debts of an insurance company like Quinn Direct? Do France rule that any Setanta claims have to be paid by the MIBI which in turn is passed on to consumers again? I'd doubt it very much.

The business practices and regulations governing them in the country are farcical and that in my view does contribute to make this country a banana republic.

CoDy1

Says on the website that it has been instructed to 'suspend its authorisation to write new insurance business'

https://www.eigplc.com/index.php

Would this indicate that existing policy's are fine until renewal?

Wrightway seem to be the name of the policies in Ireland

Mycroft H

RTE News seems to think so. I would be contacting your broker Monday morning to find out what's going on.

mikeecho

Cookie_Monster wrote: »

You can do that, just like Dublin Bus for example. Of course you do need a spare 10 millions or so as a bond

You'll need a cert of exemption.

The only organisation that have that are dublin bus, the gardai, bus eireann, army, fire services.

Neonite

CoDy1 wrote: »

Says on the website that it has been instructed to 'suspend its authorisation to write new insurance business'



Would this indicate that existing policy's are fine until renewal?

Wrightway seem to be the name of the policies in Ireland

The company have gone into liquidation and issued a public notice for protection against creditors. Any policy with them is next to useless. You would have to attend a creditors meeting in Gibraltar or Ghana (heard they are from there). May be some recovery through the MIBI under the RTA for third party claims. Need to arrange alternative cover pronto.

The problem here is the EU freedom of services. Companys can 'passport' into the country and not regulated by the Central Bank. Its a major weakness in the consumer protection framework and ironic, the CB enforces stringent compliance on insurance businesses who are regulated here and champion of the consumer. The system then allows cowboy companies to operate with effectively no supervision and the consumer is a sitting duck. Its madness.

The consumer looks for the cheapest option without really knowing the risks. Understandable given the current cost of motor insurance and the industrys poor management of their affairs. Gov are powerless or will take a lifetime to sort it out. Brokers under huge pressure to compete against amongst others.....direct insurers. A mess of a situation.

RandomAccess

I don't like all these shell company trading names. Bumfluff insurance is a trading name of blah de blah.

MugMugs

Quite bizarre the MIBI being forced to pick up the bill given we picked up the bill for Sean Quinns UK book when he sunk.

I believe the MIBI are challenging this in the high court on the back of the Maltese Setanta.

Del2005

MugMugs wrote: »

Quite bizarre the MIBI being forced to pick up the bill given we picked up the bill for Sean Quinns UK book when he sunk.

I believe the MIBI are challenging this in the high court on the back of the Maltese Setanta.

Doesn't matter if MIBI win or loose, we'll still have to cover it.

MugMugs

Del2005 wrote: »

Doesn't matter if MIBI win or loose, we'll still have to cover it.

Are you referring to the Setanta situation? Care to expand on the reasoning behind that?

cplwhisper

I wouldn't be waiting for a 10-day cancelation letter as if no staff getting paid they'll b no staff to type the letter.

Mibi will not be funding the bills setanta built up. MIBI compensate when no cover was ever in place .. Company going bust is different

Neonite

Understood Insurance companies are in the Supreme Court appealing high court ruling they should cover MIBI claims .Poor Insurances companies they lose business to cheaper alternatives and then have to cover the losses of those insurers when they go out of business. Ultimately it seems like the taxpayer and definitely policyholders will pick up the tab.

Sue Pa Key Pa

If the MIBI are forced to cover the losses, it will be put on to your premiums. If it comes out of the compensation fund, it means they will be paid out of the 5% levy already paid on premiums. That is what the levy was designed for, not just general taxation by the Government

MugMugs

Sue Pa Key Pa wrote: »

If the MIBI are forced to cover the losses, it will be put on to your premiums. If it comes out of the compensation fund, it means they will be paid out of the 5% levy already paid on premiums. That is what the levy was designed for, not just general taxation by the Government

The levy is there to cover the burden placed as a result of Irish companies going wallop, namely QUINN and AIB previously. It is not there to clean up after other EU Countries Insurers go wallop.

The Irish tax payer should in no manner bear the brunt of Gibraltar's Insurer going tits up.

Nody

Sue Pa Key Pa wrote: »

If it comes out of the compensation fund, it means they will be paid out of the 5% levy already paid on premiums. That is what the levy was designed for, not just general taxation by the Government

That's assuming the fund already had enough money which is not the case; if it goes to the compensation fund expect to see those 5% levies to be increased to 7.5% or higher to compensate.