§ Mr. CousinsTo ask the Secretary of State for Trade and Industry what is the number of compensation claims under the Insurance Companies Act 1982 submitted, rejected and approved in each year since 1987, together with the total size of awards made.
§ Mr. RedwoodThere are no arrangements for compensation under the Insurance Companies Act. The Policyholders Protection Act 1975 provides for the compensation of private policyholders in the event of an insurance company being unable to meet its liabilities. In the case of compulsory insurance, compensation is 100 per cent. of the insurer's liabilities to the private policyholder. For non-compulsory insurance, 90 per cent. of the liabilities is paid in compensation or, for life insurance, continuity of cover arranged. The Policyholders Protection Board is currently making payments in respect of:
Claim paid Insolvent Company Total Since 1987 £ £ Underwriters National Assurance Company 402,538 12,928 Cotton Trades Insurance Association Ltd. 120,000 1,422 Cavalier Insurance Company 21,720 4,236 Pacific and General Insurance Company Identification of policyholders eligible for assistance ongoing These insolvencies occurred prior to 1987.
The board expects that they will in future need to provide compensation for some policyholders of: 260W
- Kingscroft Insurance Company Ltd.
- El Paso Insurance Company Ltd.
- Lime Street Insurance Company
- Mutual Re-Insurance Company Ltd.