RE: Warranty Holdings in Administration
Thursday 25th March 2004
Warranty Holdings in Administration
Perhaps it was 'wear and tear'?
News comes today that one of the most well known companies in the warranties business is now in difficulties with administrators having been appointed to try and salvage the company and/or find a new owner.
Discussion
well thats prob put an end to my TVR ownership after a nice 4 months. They were quite happy to take the transfer money last month from the previous owner. My tuscan is at TVR power in Coventry having new piston rings fitted, I can't see that being cheap
>> Edited by gr4eme on Thursday 25th March 13:27
>> Edited by gr4eme on Thursday 25th March 13:27
*phew* thank goodness that cheque they just sent through didn't bounce 
I can't help but think that alot of this may be down to garages taking the piss on claims .. I was once told by a TVR dealer no less to keep a dirty old alternator and starter to hand to make bogus claims on .. I was appaulled that anyone would suggest such a thing!!
WHA weren't all that bad as long as you approached them in the right manner. A number of times I've come up against a car with a warranty, tried to make a claim only to find that although the money had been taken off the customer the warranty had never been registerred .. wonder where the moany went then? hmm..
it pissed me off though that you can make legitimate claims for broken components and only get a proportion of the costs back, and then at only 28 pounds an hour labour rate.
The aftermarket waranty business is looking a bit sparse for TVR now .. especially as WHA underwrote the Spirit warranty .. where will TVR Eng. go for their warranties if WHA do fold / dissolve? ..
I can't help but think that alot of this may be down to garages taking the piss on claims .. I was once told by a TVR dealer no less to keep a dirty old alternator and starter to hand to make bogus claims on .. I was appaulled that anyone would suggest such a thing!!
WHA weren't all that bad as long as you approached them in the right manner. A number of times I've come up against a car with a warranty, tried to make a claim only to find that although the money had been taken off the customer the warranty had never been registerred .. wonder where the moany went then? hmm..
it pissed me off though that you can make legitimate claims for broken components and only get a proportion of the costs back, and then at only 28 pounds an hour labour rate.
The aftermarket waranty business is looking a bit sparse for TVR now .. especially as WHA underwrote the Spirit warranty .. where will TVR Eng. go for their warranties if WHA do fold / dissolve? ..
joospeed said:
where will TVR Eng. go for their warranties if WHA do fold / dissolve? ..
Now personally i'm not flush with cash. But someone on here must fancy setting up a warranty company. Lets face it you have a customer base right here. And you know what's peeved you about WHA.
So a Warranty company by enthusiasts, for enthusiasts?
(or this could be a rubbish idea!....just thinking!)
>> Edited by Munter on Thursday 25th March 15:25
>> Edited by Munter on Thursday 25th March 15:26
The Guardian said:
11 November 2003
Warranty chief quits after Ford investigation
The head of one of Europe's largest warranty companies has suddenly left after "irregularities" were uncovered by its owner, Ford Motor Company.
David Shapiro, the group managing director of Warranty Holdings, had been asked to leave after a routine internal audit by Ford which bought the business in 2001. Mr Shapiro was running the business, which was formed in 1974, when it was taken over by the car group and is a well known figure in the motor industry.
Last night Ford said he was no longer employed by Warranty Holdings or any associated group companies after an investigation prompted by the discovery of the irregularities.
"During a routine internal audit of policies, procedures and processes and to ensure that Warranty Holdings meets all acceptable corporate governance standards, certain irregularities were identified," Ford said.
The departure of Mr Shapiro immediately prompted speculation that Ford would dispose of the business and stop selling the insurance policies which could alarm car dealer ships. But the motor group stressed that the irregularities would not have any impact on the funds used to underwrite the insurance policies sold by Warranty Holdings.
All the underwriting funds are held by Ford's insurer Aberdeen or by other external insurers.
Its turnover was pounds 84m in 2002; this is forecast to increase by 10% in 2003 and had been expected to continue to rise rapidly under Ford's ownership.
Someone spoke too soon. Edited for a missing 'o' !
>> Edited by chim_girl on Thursday 25th March 21:03
Rang then today and everything is still normal at the claims department.
I think it's a case of wait and see what happens. The market always finds a replacement if needed.
and if it was being ran wrong then things can only get better heh?
I know who you mean Julian and that really pi**ed me off too.
HOORAY!!! 
RIDDANCE 
If you look at how much TVR's cost to run and repair, the amount you pay for a warranty is so small that they couldn't possibly make ends meet if they paid out on all legitimate claims. Otherwise the warranty would cost much more than they currently charge.
I suppose they cover other makes of car that require less investment and fewer claims to try and balance the books, but nevertheless it is understandable that they always quote 'wear and tear' or negligence to try and wriggle out of claims.
I'd never bother with a warranty again because when I did have one I had to fight tooth and nail for every penny, even resorting to solicitor's letters to threaten them into submission. Very stressful, and all the while your pride and joy languishes in dry dock.
You might aswell dig deep to pay a decent garage to do a decent job and get on with enjoying the car. Or sell it and buy a sensible car - unfortunately, anyone who buys a TVR with a warranty and think they're covered are kidding themselves.
>> Edited by Tatlow on Thursday 25th March 19:14
I suppose they cover other makes of car that require less investment and fewer claims to try and balance the books, but nevertheless it is understandable that they always quote 'wear and tear' or negligence to try and wriggle out of claims.
I'd never bother with a warranty again because when I did have one I had to fight tooth and nail for every penny, even resorting to solicitor's letters to threaten them into submission. Very stressful, and all the while your pride and joy languishes in dry dock.
You might aswell dig deep to pay a decent garage to do a decent job and get on with enjoying the car. Or sell it and buy a sensible car - unfortunately, anyone who buys a TVR with a warranty and think they're covered are kidding themselves.
>> Edited by Tatlow on Thursday 25th March 19:14
steve-p said:
Well, if they are in trouble, it can't be because they weren't charging high enough premiums. And it sure as hell can't be because they were being generous with payouts. In my experience they were crap on both counts. Incompetence, then.
One of the problems is that the amount the punter pays for the warranty, and the actual risk premium paid by the administrator (WH in this case) to the insurer is often very different. Sometimes the risk premium can be as low as 10-30% of what you pay, the other going in commissions to the administrator and dealer. As Joolz said already, there is also a risk of dealers selling the policies and then only declaring them to the insurer if a claim is made. All this means that the insurer's rarely make much, if anything, from underwriting warranties. From my experience there are more cowboys in the car warranty business than there were in Dodge City.
Another factor is that I think WH placed some of their risk into NIG, who were put into run-off due to large losses when Churchill, their owner, was sold to Direct Line. Given the way the insurance market is, WH probably struggled to find another underwriter.
TVR could set up there own insurance company and run their own warranty program if they wanted to.
>> Edited by basil brush on Saturday 27th March 00:46
I am lead to believe that my old company (Aon)is attempting to buy some of the old WHA from the administrators. I do not know if this will help any of the "manufacturer" warranties However if you have an "Underwritten" policy you are protected by that Underwriter and the Insurance Ombudsman.
It is a pity that a company under the umbrella of Ford should go this way, but Financial Irregularities have been abound this company for a while.
Many of my ex colleagues went to work for this company, all of which are honest hardworking people, now subjected to an uncertain future by the greed of some very senior people.
It is a pity that a company under the umbrella of Ford should go this way, but Financial Irregularities have been abound this company for a while.
Many of my ex colleagues went to work for this company, all of which are honest hardworking people, now subjected to an uncertain future by the greed of some very senior people.
The Latest (Source: PostMagazine).
Warranty Holdings faces police probe
Stephanie Denton
Hertfordshire-based broker Warranty Holdings went into administration last week, days before its primary underwriter NIG was due to pull the plug.
Two-thirds of the £100m book for Warranty Holdings was underwritten by NIG, with the contract due to expire at the end of this week.
A source from within Warranty Holdings said: "We have been given three reasons for the administration. There are financial irregularities; it needs substantial investments, which parent company Ford isn't prepared to put in; and NIG has withdrawn its underwriting support. Our real understanding is that there has been some serious mismanagement of the company."
Hertfordshire police has also confirmed its fraud squad is starting an investigation into alleged business irregularities at the broker.
Nigel Ruddock, Ipe Jacob and Ian Carr, partners at Grant Thorton, have been appointed joint administrators. Mr Jacob said: "Warranty Holdings' directors were concerned the process and control functions were not working as they should. This problem has been escalating and our forensic staff had gone through hard disks and drives as we have serious concerns about data and process integrity."
UK Underwriting acquired the renewal rights to NIG's legal expenses, creditor and warranty business in October 2003. However, it rejected the opportunity to purchase other parts, which included Warranty Holdings' business. Paul Smith, managing director of UKU, said: "We chose not to acquire this part of the business at this time because it did not fit our portfolio."
NIG and Axa, the other main underwriter, have confirmed existing policies are still valid. In a statement, Axa said: "Axa Insurance would like to reassure all customers with existing policies purchased through Warranty Holdings on or before 25 March 2004 that valid claims will continue to be met."
Warranty Holdings faces police probe
Stephanie Denton
Hertfordshire-based broker Warranty Holdings went into administration last week, days before its primary underwriter NIG was due to pull the plug.
Two-thirds of the £100m book for Warranty Holdings was underwritten by NIG, with the contract due to expire at the end of this week.
A source from within Warranty Holdings said: "We have been given three reasons for the administration. There are financial irregularities; it needs substantial investments, which parent company Ford isn't prepared to put in; and NIG has withdrawn its underwriting support. Our real understanding is that there has been some serious mismanagement of the company."
Hertfordshire police has also confirmed its fraud squad is starting an investigation into alleged business irregularities at the broker.
Nigel Ruddock, Ipe Jacob and Ian Carr, partners at Grant Thorton, have been appointed joint administrators. Mr Jacob said: "Warranty Holdings' directors were concerned the process and control functions were not working as they should. This problem has been escalating and our forensic staff had gone through hard disks and drives as we have serious concerns about data and process integrity."
UK Underwriting acquired the renewal rights to NIG's legal expenses, creditor and warranty business in October 2003. However, it rejected the opportunity to purchase other parts, which included Warranty Holdings' business. Paul Smith, managing director of UKU, said: "We chose not to acquire this part of the business at this time because it did not fit our portfolio."
NIG and Axa, the other main underwriter, have confirmed existing policies are still valid. In a statement, Axa said: "Axa Insurance would like to reassure all customers with existing policies purchased through Warranty Holdings on or before 25 March 2004 that valid claims will continue to be met."
I had a claim authorised by WHA last Friday, but they wouldn't give me (the dealer) authorisation in writing (the excuse was...they are in administration and the administrators won't let them do this).
Work has been done and am sending the paperwork off today, fingers crossed that they will pay it.
davidy
Work has been done and am sending the paperwork off today, fingers crossed that they will pay it.
davidy
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