HC Deb 10 May 1971 vol 817 cc6-7
4. Mr. Greville Janner

asked the Secretary of State for Trade and Industry whether he will now make representations to the British Insurance Association concerning its refusal to accept responsibility for debts of the Vehicle & General Insurance Group, other than those arising out of passenger liability.

Mr. John Davies

I would refer the hon. Member to the answer I gave to my hon. Friend the Member for Leicester, South-West (Mr. Tom Boardman) on 10th March. My discussions continue.—[Vol. 813, c. 138–9.]

Mr. Janner

Is the right hon. Gentleman aware of the widespread hardship caused by the collapse of Vehicle & General and the equally widespread feeling that, the British Insurance Association having clothed V. & G. with its apparent stability, something should be done about this very soon?

Mr. Davies

I am very conscious of the widespread concern about this. I am pressing forward with discussions with the B.I.A. and I shall certainly report on this matter at the earliest opportunity.

Mr. Tom Boardman

Will my right hon. Friend agree that although there would not appear to be any legal liability on the part of B.I.A., the way in which that organisation represented the creditworthiness of its members may, if not honoured, bring considerable damage to the insurance world?

Mr. Davies

Yes, I am aware of that, and I think B.I.A. is, too.