If Your Insurer gets bust
Author: Adeel
Insurance providers are covered by government backed scheme called Financial Services Compensation Scheme (FSCS).Just for your information, this scheme covers banks also.
So in case your insurer (or bank) goes bust then FSCS will try and find another provider to take over or issue a substitute policy.FSCS will even ensure that you are covered, even if there is an ongoing claim or looking to make a claim.
FSCS covers you in two ways: -
CONTINUITY FSCS will find another provider to “maintain continuity”. In case of bankruptcy FSCS will ask another provider to take over for the protection of busted company’s customers rights. So practically you will be getting same service in normal way.
Refund If FSCS is unable to transfer your policy then you will be given certain time to take alternative policy and any money you have paid will be refunded as compensation. Percentage of refund also depends on what sort of policy you have taken. If you have paid in lieu of compulsory policy like car insurance then you are entitled for 100% refund but in case of optional or non compulsory policies e.g. travel or pet insurance you will get 100% of first 2000 pounds then 90% of whatever you paid.
To apply for cheap car insurance or to see esclusive comparison sites,online brokers and insurance companies,click HERE.
Don’t forget to read our other useful pages e.g MOT,to find out everything about MOT,how to avoid failing MOT, retest fees and finding a cheap,reliable MOT test centre near your home run by your local councils.
Warranty,to find out best policies.
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Breakdown cover,to find out best policies and deals.
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