Sirius faces legal threat

A renegade Welsh broker is locked in a David and Goliath-style battle with Sirius Financial Systems over £37,000.

Lawson D Jones principal Jeff Jones has threatened legal action against Sirius after refusing to implement the broker system because, he claims, other small brokers had a catalogue of problems with it.

He wants the £37,000 he paid for the system returned.

However, Sirius insurance division managing director Mike Dodd said that Sirius had at least 160 live installations, with the vast majority of brokers delighted with their purchase.

Dodd said Jones had made several promises to try the system, but reneged, and had refused to attend arbitration with Sirius.

Jones signed up to Sirius during roadshows to launch the system in December 2000 after deciding to break into the commercial market.

He said he then found the new system would not immediately offer point-of-sale commercial vehicle quotes.

After spending the past two years bombarding Sirius with letters and calls demanding a refund, Jones said he was unsure where to turn.

Dodd said some brokers experienced teething problems, as with any new IT system, but that those with sufficient infrastructure had adjusted without problem.

Last year Biba mediated between Sirius and a group of small brokers from across the UK who threatened legal action over their dissatisfaction with the system.

Biba chief executive Mike Williams said, to the best of Biba's knowledge, Sirius had come to amicable arrangements with the brokers.

Of these, Insurance Times understands at least four signed confidentiality agreements in return for escaping their contracts with Sirius.