MCE refunds arrive: Riders finally get some cash back after long delays

Four months after MCE Insurance Company Limited fell into administration, and two months since the administrators cancelled policies, riders have started to receive partial refunds from the Financial Services Compensation Scheme (FSCS).

Underwriters MCE IC Ltd’s permission to write insurance was suspended on November 5, 2021, and on November 19, the company was placed in administration.

In January, administrators Kroll announced their intention to ‘disclaim’ all policies after examining the financial position of the company. Customers who paid for their policy in full, or who had paid a monthly amount that took them past January 31, were told they would be eligible for a refund of up to 90% of the unused portion of the policy from the FSCS.

Now the cheques are beginning to arrive, some two months since riders were forced to take out new policies. At the time, many brokers offered to honour any No Claims Bonus riders earned in that period, to prevent bikers losing out.

Regardless, many riders were still upset at the prospect of having to fork out hundreds for a new policy so soon after the Christmas period, with the prospect of waiting months until they received a refund. One MCE customer, who wished to remain anonymous, said they’d been forced to take out a loan to buy a new policy so they could continue to work as a delivery rider.

The broker, MCE UK, was unaffected by the administration, so they are still able to arrange cover with a different underwriter. Policies taken out after the administration are unwritten by a different company, Sabre, and are unaffected.

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“We want to support the community” – Brokers offer help after MCE Insurance disclaims policies

First published 14 January 2022 by Jordan Gibbons

Insurance brokers from across the bike market have offered help to riders affected after Gibraltar based Green Realisations 123 Ltd. (formerly MCE Insurance Company Limited) stated their intention to disclaim all its motorcycle and scooter policies at midnight, Monday January 31.

Underwriters MCE IC Ltd’s was placed in administration on November 19, 2021,  and it is Krolle, the administrators, who have announced the intention to disclaim all policies after examining the financial position of the company.

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Customers who have paid for their policy in full, or who have paid a monthly amount that takes them past January 31, could be eligible for a refund of up to 90% of the unused portion of the policy from the Financial Services Compensation Scheme.

However those customers stand to lose any No Claims Bonus earned in that year to date. After the announcement some insurers said they would do their bit to help people affected by honouring their no claims including Carole Nash, Bennetts, Principal, BeMoto, Swinton and Lexham. 

“When we heard the news, we realised we had to step in and help the motorcycle community,” says Mark Copper, head of bike at Swinton. “It couldn’t come at a worse time, right after Christmas and we know some riders will struggle to pay for a new policy, especially very new riders who might lose all the NCD they have.

“That’s why we’ve had an agreement from most of our panel of insurers to be able to top up riders who have reached nine months without a claim to a full year.

“It’s also worth adding that even if you struggle to get a quote online, pick up the phone and give us a call. Everyone here is ready to hear your story, so we can go to our panel and get you the best price.”

Lexham Insurance’s Digital Marketing Manager Brett Tinkley told MCN: “also we are offering just 10% deposit for those wanting to pay over loan agreement too in order to help former MCE Insurance company customers at this time.”

The broker MCE UK is unaffected by the announcement, so they are still able to arrange insurance cover with a different underwriter. Policies taken out after November 8 are unwritten by a different company, Sabre, and are also unaffected.

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Claimants could lose out in insurance administration

First published on 27 October 2021 by Dan Sutherland

MCN has learned that bikers who were insured by the insolvent MCE Insurance Company Ltd (MICL) will only have 90% of the value of the claims paid by the Financial Compensation Services Scheme (FSCS). Gibraltar based MICL were an underwriter that insured people through the UK-based MCE Insurance Ltd (MIL), which is still trading.

On November 5, 2021 MICL were instructed to cease underwriting new business then on November 19 the company was placed in administration. Once MICL went into administration the FSCS, which operates a fund of last resort, became responsible for paying any claims.

However, under the FSCS standard terms of operation, first party claimants are only protected to 90%, while third party claims are 100%.

That means if you had a claim, such as a complete write off or for theft, you’d lose 10% of the value of the claim, on top of any compulsory or voluntary excess. For some of the riders who were insured by MICL this could equate to a loss in the thousands.

It also might not be the fastest process, with the FSCS saying that 80% of the general claims take over seven months to complete.