The Optionclaim personal and family legal expenses policy has been revamped after the brand was sold to Roman Associates, a new company headed by former Optionclaim director Marlon Potts.

Optionclaim went into voluntary liquidation last July after running up debts, including £700,000 owed to car hire giant Hertz.

It follows the adverse decision for uninsured loss recovery firms in the landmark Dimond v Lovell legal case.

The case made policies that did not comply with the Consumer Credit Act unenforceable.

A statement issued by Optionclaim's legal advisers at the time of its liquidation said: “Optionclaim ran into cashflow problems as a result of the Dimond v Lovell ruling, which has affected the whole ULR industry.”

The uninsured loss recovery specialist's 500,000 policyholders and claims handling staff have been transferred to Roman Associates.

The new owner has retained the widely recognised Optionclaim brand, which has five distinct areas of cover – consumer disputes, domestic claims, personal accident, employment claims and professional negligence.

A spokesman for Roman Associates explained the reason for the policy's facelift.

He said:”This is the first step in a major overhaul of the existing product lines, and has been well received by brokers.

“As new players in the legal expenses market, we felt it was essential to maintain the Optionclaim name, which we have found is well respected in the market.”

The Optionclaim policy pays up to £25,000 for legal representation and is underwritten at Lloyd's.