The UK Financial Services Compensation Scheme (FSCS) will protect at least some of the policyholders hit by the collapse of the Danish insurance company Alpha Insurance.
Alpha filed for bankruptcy earlier in May, leaving many up to 700 taxi drivers and 10,000 minicab drivers in the UK without protection.
Worried drivers whose insurance was voided as of 8 May flocked to the London office of Protector, which acted as a broker for Alpha in the UK to policyholders, following the news of the insurer’s collapse.
Regulator the Danish Financial Supervisory Authority said in a statement: “The insurance company Alpha Insurance A/S has been declared bankrupt. Policyholders in the company must write a new policy with another insurance company as fast as possible if they want to maintain their insurance cover.”
“The Danish Guarantee Fund for non-life insurance undertakings will cover some claims incurred prior to the date of bankruptcy and up to four weeks after the curator has notified policyholders of the bankruptcy.”
It is possible that the Danish Guarantee Fund may cover some existing policies, primarily for policyholders with private insurance, until 5 June, according to the UK Financial Conduct Authority.
The FSCS declared the insurance company in default on 11 May. It said: “We have been speaking with the Danish insurance guarantee fund to understand how its protection applies to UK policyholders. It appears that some policyholders will be protected by FSCS, and we are working with the Danish parties to put in place the appropriate arrangements for claims to be handled.”
Lawyer Boris Frederiksen has been named as the curator of the bankruptcy estate.