Claimants could lose out in insurance administration

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MCN learned that riders who were insured by the insolvent MCE Insurance Company Ltd (MICL) would only have 90% of the value of claims paid by the Financial Compensation Services Scheme (FSCS). MICL, based in Gibraltar, was an underwriter who insured persons through the UK company MCE Insurance Ltd (MIL), which is still in business.

On November 5, 2021, MICL was ordered to stop writing new business, then on November 19, the company was placed in receivership. Once the MICL took office, the FSCS, which operates a fund of last resort, became responsible for settling claims.

However, under FSCS standard operating conditions, first party claimants are only 90% protected, while third party claims are 100%.

This means that if you had a claim, such as a total loss or theft, you would lose 10% of the value of the claim, in addition to any mandatory or voluntary deductibles. For some of the runners who were insured by MICL, this could amount to thousands of losses. It may not be the fastest process either, with the FSCS saying 80% of general complaints take more than seven months.


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