§ Mr. McGuireasked the Secretary of State for Trade and Industry (1) if he will introduce legislation to protect the interests of those people who on purchasing certain types of electrical consumer goods, took out extended guarantee insurance policies with companies which subsequently went into liquidation;
(2) if, in the light of the case of Cavalier Insurance Company, he has made any changes in the arrangements within his Department relating to authorising insurance companies and checking that they take business only within their authorised categories; and if he will make a statement.
§ Mr. FletcherMy officials have written to retail trade associations drawing their attention to the Cavalier case, urging them to do all they can to ensure that their members check with the Department that any insurance company offering to provide extended warranty insurance is authorised under the Insurance Companies Act 1982 to carry out that type of business. A number of inquiries have been dealt with as a result. At present I do not see a need for further legislation in this area. Existing legislation will be vigorously enforced by my Department, which continues to make inquiries into any scheme coming to notice where the nature of any insurance arrangement is not clear.