FSCS is proposing a new scheme of arrangement
More than £405m in compensation has been paid to policyholders of failed firm Independent Insurance Company (IICL) over the past 13 years, the Financial Services Compensation Scheme (FSCS) has said.
Back in 2012 an FSA document revealed the amount was around £404m.
In order to close the estate, the liquidators are now proposing a new scheme of arrangement for the insurer.
FSCS and the joint provisional liquidators have agreed that under the scheme, FSCS will continue to protect the policyholders and third parties who are eligible for FSCS protection, but whose claims have not been finalised.
It will also allow a dividend to be paid to FSCS and non-FSCS protected creditors for any claims against IICL. It will also allow the estate to close once all assets have been distributed
The scheme will need to be approved by the High Court.
The FSCs said: “IICL was a large general insurer and its insolvency presented a number of complex problems that the joint provisional liquidators (JPLs) of IICL had to resolve.
“FSCS has worked closely with the liquidators on protecting policyholders. In order to close the estate, the liquidators are now proposing a scheme of arrangement (scheme) for IICL.”