Final 35 refusenik Names will be made bankrupt today
The last 35 Lloyd's of London Names who refused to accept the Equitas/Lloyd’s restructuring will today be declared bankrupt in the High Court, the Telegraph reports.
The bankruptcies come after the Court ruled against their claim that they had been misled over insurance deals they bought into prior to the market's near collapse in 1992.
Their case began in 1996 when Lloyd’s tried to collect money owed by the Names to cover very heavy losses incurred on asbestosis-related claims.
1,200 refused and about 200 sued for compensation claiming Lloyd's brochures had led them to believe that the Reinsurance To Close (RITC) cover completely ended their liabilities at the end of each underwriting year. They lost that case.
Sean McGovern, Lloyd's general counsel, said the ruling would help the market "close a chapter in our history".
Christopher Stockwell, chairman of the Lloyd's Names Association, who was himself bankrupted in 1994 after the losses suffered in the insurance market, said the court case had been "devastating" for those involved.
"Many of the people involved in this court battle have died and others are now elderly," he said. "After today, we hope this torment will be over for those affected, meaning they are free to get on with their lives."
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