§ Mr. KeetchTo ask the Chancellor of the Exchequer what representations he has had for compensation following the collapse of the Independent Insurance Company; and if he will make a statement. [9050]
§ Ruth KellyThe Treasury has received a number of inquiries relating to Independent Insurance.
I understand that the provisional liquidators are continuing to go through the process of identifying all policyholders and agreeing claims where appropriate. Many of those claims will be covered by the Policyholders Protection Board (PPB). This means: valid claims under compulsory insurance, including third party motor insurance, are payable in full; and valid claims made by private policyholders (essentially individuals and partnerships, but not small companies) under non-compulsory insurance, including other liability claims, 376W claims for own damage under comprehensive motor policies, buildings and home contents policies etc., are payable to 90 per cent.
Claims by businesses, except for claims under compulsory insurance policies, will generally rank with other creditors of the company to be paid in due course by the provisional liquidator to the extent that funds are available.