The Financial Services Compensation Scheme (FSCS) is to pay...
The Financial Services Compensation Scheme (FSCS) is to pay emergency claims relating to policies sold by travel broker Whiteley Insurance Consultants.
Whiteley was put into provisional liquidation last month.
The FSCS said it had declared Whiteley in default to enable it to provide immediate assistance to the provisional liquidator, PricewaterhouseCoopers, for emergency claims that fall within the scope of its protection.
This means the FSCS will now consider paying emergency claims arising from business conducted on or after 14 January 2005, it said.
The FSCS said it was still too early to say whether a levy on the insurance industry will be needed to cover the claims or how much any levy might be.
FSCS chief executive Loretta Minghella said: “We are naturally very concerned about the position of policyholders with emergency claims, particularly if the claim relates to emergency medical treatment.
“We have taken the decision to assist the provisional liquidator with the payment of emergency claims, where we can, while the financial situation of the firm is being clarified.”
The FSCS said it will not be handling claims directly. Instead claims will be handled through the provisional liquidator's helplines and will be considered on a case-by-case basis.
