Lloyd's has set aside £4.9m to pay claims related to a collapsed travel insurance intermediary.
The Management Company (London) issued policies bearing the Lloyd's name without Lloyd's authority.
…
Lloyd's has set aside £4.9m to pay claims related to a collapsed travel insurance intermediary.
The Management Company (London) issued policies bearing the Lloyd's name without Lloyd's authority.
Lloyd's said in its annual report that this was not an admission of liability, but a move to protect its reputation and the members of the public who bought the policies.
In July last year, The Management Company (London) went into liquidation, leaving an estimated 150,000 policyholders without travel insurance.
At the time, Lloyd's said it would honour any valid claims, using the Central Fund, but vowed to recover that money through litigation.
Lloyd's indicated in its results report for 2001 that
it had set aside the £4.9m after taking into account a contribution of £2.6m from the parties involved in the dispute.
