Three firms charged Sky customers up £11.49 per month for insurance premium with unlimited callouts
The Financial Services Authority (FSA) has obtained a High Court ruling appointing provisional liquidators over three firms that the FSA considers were engaged in insurance activities without FSA authorisation.
Digital Satellite Warranty Cover (DSWC), Satellite Services (Satellite), a partnership, and Nationwide Digital Satellite Warranty Services (Nationwide Digital) were operated by Bernard Freeman and Michael Sullivan
Each company offered BSkyB’s (Sky) satellite TV customers a form of extended warranty which constituted insurance.
In return for an insurance premium of between £6.49 and £11.49 per month, the firms promised customers unlimited callouts covering all parts and labour costs.
DSWC made a profit of approximately £10 million in the last 12 months and had a customer base of up to 200,000 people.
When it investigated Satellite’s accounts the FSA found that turnover reached £2.1 million in 2010.
As part of this action the FSA is seeking to wind up DSWC, Satellite and Nationwide Digital.
In a statement, the FSA said products described as warranties by the firms amounted to contracts of insurance and arranging and effecting contracts of insurance is a regulated activity.
None of the firms had been authorised by the FSA.
Hosted by comedian and actor Tom Allen, 34 Gold, 23 Silver and 22 Bronze awards were handed out across an amazing 34 categories recognising brilliance and innovation right across the breadth of UK general insurance.
