The Policyholders Protection Board (PPB) has started paying Independent Insurance's agreed claims and fast-tracking hardship cases, it has told brokers.
The British Insurance Brokers' Association (Biba) and representatives from Aon and Jardine Lloyd Thompson met with PPB chairman Sir John Carter and two other senior PPB members on Monday.
Biba chairman Mike Williams said the PPB was emphatic in its desire to help the industry.
“It was overall a very positive meeting,” he said.
“They're determined to be helpful but they're hidebound by the acts under which they operate, which can be quite narrow.”
Williams said the PPB would not contemplate paying compensation on commercial policies.
He warned this could create a dangerous situation in which corporate clients refused to cancel their policies because the value of potential claims, which would be covered by the PPB, would be greater than any returned premium.
However, Williams said the PPB was paying hardship claims quickly and had started paying claims agreed by liquidators Pricewaterhousecoopers (PWC).
The full minutes of the meeting are below:
Date and Time 13 July 2001 at 2.00 pm
Place Policyholders Protection Board (PPB),
51 Gresham Street, London
Present Sir John Carter, PPB
Brian Griffiths, PPB
Roger Clements, PPB
