The Financial Services Compensation Scheme (FSCS) is stepping in to help customers of Lemma Europe Insurance Company, which has failed.
The scheme is working closely with the provisional liquidator in Gibraltar, Grant Thornton, to protect the firm’s UK customers after declaring it in default.
Up to 7,000 UK policyholders may be affected by the collapse of the insurer, which sold a variety of policies which may qualify for FSCS protection including: general property; householders; general public liability; UK employer’s liability; fine art and jewellery; legal expenses; bloodstock; livestock; UK solicitors’ professional indemnity.
The maximum level of compensation for claims against firms is 90% of the claim with no upper limit, although the FSCS covers compulsory insurance (such as employer’s liability and motor third-party risks) in full.
FSCS chief executive, Mark Neale, comments: “We are prioritising people who may have urgent claims and will be working with the provisional liquidator to ensure that emergencies can be dealt with. People facing potential hardship will be our top priority.”