FSCS says it is working with ERIC to determine the payment details of the remaining policyholders
The Financial Services Compensation Scheme (FSCS) has issued premium refunds to more than 2,600 policyholders of failed insurer European Risk Insurance Company (ERIC).
The FSCS added that it was working with ERIC to determine the payment details of the remaining policyholders so payments can be issued.
The FSCS calculates compensation at 90% of the unused premium and will pay this by cheque.
In 2014/15 the FSCS paid out £4.3m alone to ERIC’s policyholders for indemnity claims – most of which came from solicitors’ professional indemnity insurance.
Most of ERIC’s UK customers are expected to be covered by FSCS.
ERIC sold a range of policies that may qualify for FSCS protection.
They included home owner insurance, general liability insurance, combined commercial insurance, professional indemnity insurance and employers’ liability insurance.
Passported insurer ERIC was declared in default in April 2014.