HC Deb 15 July 1974 vol 877 cc9-10W
Mr. Carter

asked the Secretary of State for Trade (1) if he is satisfied with the effectiveness of his powers under the Insurance Companies Act 1973 in the light of the financial collapse of the Nation Life Insurance Company;

(2) if Nation Life Insurance Company was one of the companies for which trustees had been appointed prior to its collapse;

(3) how many policyholders were affected by the collapse of Nation Life Insurance Company;

(4) what is the estimated loss as a result of the collapse of Nation Life Insurance Company;

(5) what discussions his Department had with Nation Life Insurance Company prior to its collapse.

Mr. Clinton Davis

My Department has been in close consultation with this company, and a requirement for assets to be placed with an approved trustee was made in September 1973. There are some 32,000 policyholders. If a winding-up order is granted, it will be the duty of the liquidator when appointed to establish the extent of any deficit that may exist; present indications are that substantial funds may be available. My Department has established that certain leading insurance companies will assist the liquidator, if one is appointed, in carrying out his obligations under the 1973 Act.

Mr. Carter

asked the Secretary of State for Trade why, following the collapse of Nation Life Insurance Company, he did not take over its responsibilities in accordance with his powers under the Insurance Companies Amendment Act 1973.

Mr. Clinton Davis

There are no powers under the Insurance Companies Amendment Act 1973 to take over an insurance company or its responsibilities.

Mr. Carter

asked the Secretary of State for Trade if he will order an inquiry into the collapse of Nation Life Insurance Company.

Mr. Clinton Davis

The company's own petition for a winding-up order is to be heard by the High Court on 29th July. Any inquiries by my Department into the company's affairs prior to the court's determination of the issue could be held to be an infringement of the powers of the court. In the event of a winding-up order being made it would be the duty of the Official Receiver to inquire into the affairs of the company.