MCE Insurance Company went into administration in November 2021 which meant that no new policies were written from 5th November 2021. As one of the largest motorbike insurers in the UK this had a significant impact on thousands of policyholders, as well as those injured following a road traffic accident involving a vehicle insured by MCE.
MCE Insurance originally advised they would honour any existing policies which were still valid, however in January 2022 all policies were cancelled, with all car and van policies ending by 14th January 2022 and motorbike and scooter policies ending by 31st January 2022.
The good news is that The Financial Services Compensation Scheme (FSCS) has confirmed that payments will automatically be made to those policyholders due refunds. For those with existing claims (such as for personal injury) against an MCE policyholder, claims will also be passed to The FSCS, who are the compensation fund of last resort for customers of authorised financial services firms. This should mean that claims will continue as normal, with 100% compensation being paid, but unfortunately there are likely to be long delays in payments being raised due to the volume of claims.
If you have not yet started your claim against an MCE policyholder following an accident you should do this as soon as possible to avoid further delays in the claims process.