Motorcycle warranty - underwriter in insolvency.
Discussion
Hi all, thought this might be the best place for this.
Set off for work today on the bike (BMW K1200S if your interested!) and after a few miles it dropped to 3 cylinders. Turned round, parked up and took the car.
When I bought the bike in September last year, being a bit of a complex beast I thought it prudent to go for a warranty, so purchased one years cover from the dealer, which was supplied by a company called Lawdata.
Although I suspect it's just a coil pack gone, I figured I might as well make use of the warranty, so dug out the claims number. Found it to be no longer in use, so after a quick search I found a general number for Lawdata. Got through, explained I was trying to get through to the claims department, she told me to email a company called Lamp Insurance. Thought this a bit strange, and a quick Google search later found that Lamp Insurance was an underwriter for various warranty firms, including Lawdata...and is now in insolvency.
So, from what I can gather, I now have a warranty that is basically worthless...
Now worse things happen at sea, but it's still annoying to have paid good money for a now worthless policy.
Obviously I am looking for a six figure payout for the stress, but was just wondering if I have any (actual) options here?
Set off for work today on the bike (BMW K1200S if your interested!) and after a few miles it dropped to 3 cylinders. Turned round, parked up and took the car.
When I bought the bike in September last year, being a bit of a complex beast I thought it prudent to go for a warranty, so purchased one years cover from the dealer, which was supplied by a company called Lawdata.
Although I suspect it's just a coil pack gone, I figured I might as well make use of the warranty, so dug out the claims number. Found it to be no longer in use, so after a quick search I found a general number for Lawdata. Got through, explained I was trying to get through to the claims department, she told me to email a company called Lamp Insurance. Thought this a bit strange, and a quick Google search later found that Lamp Insurance was an underwriter for various warranty firms, including Lawdata...and is now in insolvency.
So, from what I can gather, I now have a warranty that is basically worthless...
Now worse things happen at sea, but it's still annoying to have paid good money for a now worthless policy.
Obviously I am looking for a six figure payout for the stress, but was just wondering if I have any (actual) options here?
You could try the Financial Services Compensation Scheme (FSCS).
From their website
From their website
FSCS said:
About LAMP Insurance
Gibraltar-based Lamp was placed into liquidation on 31st May 2019. The firm provided a range of insurance policies to the UK retail and commercial market, including home insurance, GAP insurance, health insurance and after the event insurance.
How is FSCS helping UK customers of LAMP?
FSCS will protect UK individuals and business customers with an annual turnover of less than £1m.
How are UK customers of LAMP protected for premium refunds on their policies?
The Liquidator will be considering which policies should be terminated. When we've more information we'll provide details of products affected and the proposed dates of termination.
Eligible policyholders are protected for 90% of the unexpired value of their premium.
If you'd like to cancel your policy, you should contact your broker who'll advise you on how this might affect the value of return of premium on your policy.
Replacement insurance
If your broker or the Liquidator can replace your policy with a new insurance provider, FSCS will pay the broker the return of premium compensation where we have reached an agreement with them.
Your broker will then pass this return of premium on to your new insurance provider. Your broker/new insurer will tell you if they’ve replaced your policy and you will be able to cancel any replacement cover during the 'cooling off period'.
FSCS may not be able to pay compensation if a broker funds replacement cover or pays return of premium on its own without securing an undertaking from you that you are required to repay them.
Premium finance
FSCS will aim to pay finance companies where you have bought the cover using a loan that required you to assign your rights to the finance company. For example, if you bought your cover using credit from either Close Brothers or Premium Credit, we will aim to pay the compensation directly to them and it will go towards paying back the loan.
We will provide more information on how to make a claim for return of premium as soon as we can.
How can I claim back the cost of my premium from my credit card provider?
If you paid for your insurance using a credit card, in certain circumstances the credit card company will reimburse you for the product you have bought. You should contact your credit card company to find out how they can help you. Tell FSCS if you successfully claim from your credit card company as this money will have to be deducted from any claim you make to FSCS.
You may be breaking the law if you attempt to claim the same loss back from both FSCS and your credit card company. Where FSCS pays you a return of premium claim we would inform your credit card company if they ask us.
What if I need to make a claim, or check the status of an existing claim, on my LAMP policy?
You should contact your broker or existing claims handlers who have already written to you about your claim. We will publish more information once the liquidator has confirmed the claims handling arrangements.
Who can I speak to if I have any questions?
You should contact your broker or existing claims handler. We will also continue to update this page with the latest developments. Get notification of the latest updates by following us on Twitter and Facebook.
Gibraltar-based Lamp was placed into liquidation on 31st May 2019. The firm provided a range of insurance policies to the UK retail and commercial market, including home insurance, GAP insurance, health insurance and after the event insurance.
How is FSCS helping UK customers of LAMP?
FSCS will protect UK individuals and business customers with an annual turnover of less than £1m.
How are UK customers of LAMP protected for premium refunds on their policies?
The Liquidator will be considering which policies should be terminated. When we've more information we'll provide details of products affected and the proposed dates of termination.
Eligible policyholders are protected for 90% of the unexpired value of their premium.
If you'd like to cancel your policy, you should contact your broker who'll advise you on how this might affect the value of return of premium on your policy.
Replacement insurance
If your broker or the Liquidator can replace your policy with a new insurance provider, FSCS will pay the broker the return of premium compensation where we have reached an agreement with them.
Your broker will then pass this return of premium on to your new insurance provider. Your broker/new insurer will tell you if they’ve replaced your policy and you will be able to cancel any replacement cover during the 'cooling off period'.
FSCS may not be able to pay compensation if a broker funds replacement cover or pays return of premium on its own without securing an undertaking from you that you are required to repay them.
Premium finance
FSCS will aim to pay finance companies where you have bought the cover using a loan that required you to assign your rights to the finance company. For example, if you bought your cover using credit from either Close Brothers or Premium Credit, we will aim to pay the compensation directly to them and it will go towards paying back the loan.
We will provide more information on how to make a claim for return of premium as soon as we can.
How can I claim back the cost of my premium from my credit card provider?
If you paid for your insurance using a credit card, in certain circumstances the credit card company will reimburse you for the product you have bought. You should contact your credit card company to find out how they can help you. Tell FSCS if you successfully claim from your credit card company as this money will have to be deducted from any claim you make to FSCS.
You may be breaking the law if you attempt to claim the same loss back from both FSCS and your credit card company. Where FSCS pays you a return of premium claim we would inform your credit card company if they ask us.
What if I need to make a claim, or check the status of an existing claim, on my LAMP policy?
You should contact your broker or existing claims handlers who have already written to you about your claim. We will publish more information once the liquidator has confirmed the claims handling arrangements.
Who can I speak to if I have any questions?
You should contact your broker or existing claims handler. We will also continue to update this page with the latest developments. Get notification of the latest updates by following us on Twitter and Facebook.
Pro Bono said:
You would probably have a valid claim against the retailer for having sold you a duff warranty. You should therefore contact them and ask if they'll do the repair for free (as well as compensating you for the cost of a replacement warranty)..
No doubt they sold it in good faith...I took out building insurance for my house last December via an online broker, only when I got an email a month ago did I realise that LAMP Insurance were the underwriters and they had been declared insolvent (in Malta).
My broker has said in its emails that, once a policyholder has cancelled their policy with the broker, then the Financial Services Compensation Scheme FSCS) will (in due course) pay 90% of unused premium for those who haven't made a claim. Ralphrj posted to this effect in post #2 of this thread, he quotes from the horse's mouth - the FSCS website - though. My broker also said that people who don't cancel their policy with them may have their policy cancelled anyway (in due course) with the refund (as above) to follow; alternatively their policy will be passed onto any new insurer who buys the remains of LAMP Insurance.
I just took out a new policy and cancelled the old one. I'll get approx. 50% of my original premium back in due course...
My broker has said in its emails that, once a policyholder has cancelled their policy with the broker, then the Financial Services Compensation Scheme FSCS) will (in due course) pay 90% of unused premium for those who haven't made a claim. Ralphrj posted to this effect in post #2 of this thread, he quotes from the horse's mouth - the FSCS website - though. My broker also said that people who don't cancel their policy with them may have their policy cancelled anyway (in due course) with the refund (as above) to follow; alternatively their policy will be passed onto any new insurer who buys the remains of LAMP Insurance.
I just took out a new policy and cancelled the old one. I'll get approx. 50% of my original premium back in due course...
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