Investigators probing the wreckage of failed ambulance chaser Claims Direct have uncovered evidence of a £100m insurance policy.

Chubb issued a policy to protect Claims Direct against errors and omissions (E&O) up to a limit of £20m.

Lawyers organising a class action against Claims Direct say further layers placed at Lloyd's provided cover up to a maximum of £100m.

This was confirmed by Aon, which broked the policy, they said.

Members of the prospective class action allege Claims Direct misled the market when it floated in September 2000.

The policy is dated 6 July 2000 and expires in 2006. Insurance Times obtained a copy of the first layer.

Richard Fields of law firm Judica, which is organising the class action, said nearly 1,600 members had losses totalling £200m.