Motorists will be left without cover after car security company Telematix went into voluntary liquidation on August 24, rendering its tracking devices useless.
KPMG partners Steve Treharne and Finbar O'Connell were appointed liquidators by the company's shareholders, to be ratified tomorrow (September 7).
It is understood the Tidworth-based company had at least 1,500 customers and, unless the liquidators find a buyer for the company, the tracking devices will be defunct. Defunct devices could invalidate insurance cover.
A source said Independent Insurance heavily promoted Telematix's E-Guard Executive product.
He said, for high-value cars, Independent insisted motorists buy one of three recommended tracking devices, which included Telematix's product.
“A lot of motorists will have bought E-Guard because of the mandate, so some have had a double whammy, because they were also insured by Independent,” the source said.
A number of insurers recommended Telematix's tracking devices.
Rumours have circulated since early this year that Telematix was in financial trouble. In February, a website was launched that viciously criticised Telematix, accusing it of non-payment of staff and product design problems.
Telematix was believed to have immediately taken out an injunction to have the website closed.
KPMG would not reveal the extent of the company's debts or the number of creditors.