Brokers will not be allowed returned premiums on any covers for corporate policyholders, Independent Insurance's liquidators Pricewaterhousecoopers (PWC) have told the British Insurance Brokers' Association (BIBA).
PWC met with BIBA yesterday to discuss a number of issues, including returned premiums, of which BIBA will be notifying its members of this afternoon.
BIBA chief executive Mike Williams said the news was important because some clients, faced with the prospect of no return, may be reluctant to cancel their policies, since claims and defence costs would still be covered by the Policyholders Protection Board.
However, PWC will be issuing a notice of cancellation of all Independent policies on Monday.
Williams said policies with a cancellation clause would have it invoked immediately and policyholders with policies that did not contain a cancellation clause would be "invited" to cancel.
He said PWC hoped all policies would be cancelled by July 31.
Minutes of the meeting will be posted on BIBA's website this afternoon and emailed to all Insurance Times' registered news readers.
Sections 2.1a and 2.2d of the minutes are relevant to returned premiums.
