Aviva rescues Carrot customers after unrated Alpha's fall

Telematics broker, Carrot has shipped over 9000 more clients over to Aviva after Alpha, the unrated Danish insurer, filed for bankruptcy.

In a letter to customers via a link on its website, Carrot said that in order to reduce the impact of the Alpha fallout, it transferred policies to Aviva with effect from 6:30pm on 9 May.

The move by Carrot comes amid chaotic scenes of cabbies desperate to gain insurance at Alpha-backed cab brand offices in London.

Danish compensation fund can pick up claims  

Carrot had 40,000 customers overall in mid-2017. It started the process of moving their policies over to other insurers after Alpha’s troubles started.

In the letter, Carrot also said that there is no additional premium payable for this new policy as Aviva will recover the refund due from the cancelled Alpha policies from The Danish Guarantee Fund.

This will provide the premium for the remaining period of cover.

Customers have been told that if they don’t want to continue with the alternative policy, they can cancel it within 14 days and no further charges will be applied.

For claims that happened between the period of bankruptcy between 6:13pm on 8 May to 6:30pm on 9 May, claims will be covered by the Danish Guarantee Fund.

Carrot said to customers: “There was a period of just under 24 hours between the 8th and 9th of May when due to their bankrupt status, you did not have full cover on your vehicle. Fortunately, during this time if you were involved in an incident which may give rise to a claim as a UK private motor insurance policyholder you will fall under the protection of the Danish Guarantee Fund.”

Any claims after 6:30pm on 9 May will now be covered by Aviva.

Managing director of Carrot, Ed Rochfort said: “We have been able to find alternative cover for our customers seamlessly and quickly.

“Our customers are receiving their updated policy documents as we speak and they are of course fully covered should they wish to drive their vehicles. The Carrot team is fully geared up to answer any questions our customers may have, including customers who may need to make a claim.

“We’re extending our opening hours over the next few days to ensure that all queries get answered quickly and fully.”

Alpha went bust after it was connected to a web of weakly-capitalised and unrated insurers that fell apart this year.