Lloyd's underwriter Equity Red Star has taken Independent Insurance's entire motorcycle book of 80,000 policies.
Carole Nash, which was rumoured to be close to collapse after Independent's failure, finalised a deal with Equity last week, acting as the intermediaries.
“All policyholders have been informed that Equity is now taking over their policies,” said Carole Nash marketing manager, Warren Dickson.
However, sources close to Independent's liquidators, Pricewaterhousecoopers, have said not all policies would be taken by Equity because they were “too risky”, leaving many policyholders “uninsurable”.
Dickson dismissed these rumours: “The whole book has been taken. Naturally there will be a review panel and each policy will be assessed, but there will be no one who is uninsurable.”
With analysts predicting non-life rates rising, even doubling, across the industry, Dickson admitted some policyholders' premium rates would increase.
Equity Red Star's underwriter, Bernard Watkins, said: “Our agreed deal with Carole Nash means customers have the benefit of policies being reinsured by them for the pro-rata outstanding period as when they were cancelled by the liquidator of Independent Insurance.
“Policyholders will not be financially worse off, as there is no additional cost to the policyholders due to the transfer.
“This solution provides little or no inconvenience to the many policyholders who would otherwise have been left to make alternative insurance arrangements.”
He said the deal had been agreed after “lengthy negotiations between the liquidators, the Policyholders' Protection Board, Carole Nash and Equity Red Star”.
