What would happen if my car insurance company went bust

J

johnwilliams

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after seeing the situation aig insurance faced .just wondering what would happen if my car insurance company went bust where do i stand legally. is there some one else covering me then (government bonded)?
 
The PMPA went bust in the early eighties. Since then there is a 2% levy on all insurance premiums. I think that there is some fund to protect against an insurance company going bust.

Dail Question in 2001 said:
The Insurance Compensation Fund levy was introduced on 1 January 1984 following the collapse of PMPA in 1983. The levy ceased to apply from 1 January 1993 as it was felt that sufficient funds had been collected to enable the successful completion of the administration of Primor plc formerly known as PMPA Insurance plc.Levies were paid by all non-life insurers at a rate of 2% of gross premium income until 31 December 1991. The rate was reduced to 1% from 1 January 1992 to 31 December 1992. Some £148 million was collected by way of the levy, which is used to finance the administration of Primor plc.
The Government levy which at present applies to insurance policies is a general stamp duty, the proceeds of which go to the Exchequer and not to the Insurance Compensation Fund.
Click to expand...
 
It depends.

PMPA and ICI were Irish based companies. Independent was a UK based company underwriting in Ireland and the policyholders were not looked after, they had to reinsure with some other company.

It woudl appear that if your company is Irish based, they would be looked after via a levy, but if they are a foreign company, they would not.
 
Well if it were to happen, you wouldn't be alone - there would be hundred of thousands in the same situation, so something would have to be sorted out i.e. not YOUR problem alone!
 
Ravima said:
It depends.

PMPA and ICI were Irish based companies. Independent was a UK based company underwriting in Ireland and the policyholders were not looked after, they had to reinsure with some other company.

It woudl appear that if your company is Irish based, they would be looked after via a levy, but if they are a foreign company, they would not.
Click to expand...

Maybe and maybe not.
 
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