Policyholders duped into buying insurance from unauthorised provider CIC Insurance Company SA (CIC) have been granted £655,000, after the High Court appro-ved an FSA application for compensation.
Around 1,700 policyhol-ders, mainly takeaway food businesses, did not have appropriate insurance after buying policies through UK-based intermediary Insureyourshop.com (IYS). CIC was never authorised by the FSA and was never fully incorporated in Greece.
"The FSA will, where appropriate, take firm action to secure redress for consumers," said Jonathan Phelan, head of retail enforcement.
"In this case policyholders were fortunate that the FSA was able to secure sufficient funds to compensate for losses that they may have suffered."