Liquidators for Independent Insurance have warned its policyholders they could face delays of up to a year before their claims are paid, according to press reports.
Pricewaterhousecoopers has said it may take up to six months to determine the extent of Independent's liabilities and a further six months to develop a scheme of arrangement for creditors.
The Policyholders' Protection Board will pay out 90% for individual non-compulsory insurance and 100% of compulsory ionsurance(third-party motor and employer's liability) for claims brought before their policy renewal.
Priority cases such as third-party motor claims are likely to be dealt with first by the board.
But commercial policyholders forced to wait for findings by Independent's provisional liquidators to find out whether their claims will be met.
