Qudos Insurance A/S Bankruptcy

This page will be updated as the situation develops, so please check regularly for updates. If it has not been updated since your last visit, then we have no new information.

This update consolidates all previously published information to give a final position as at 1st September 2019.

Replacement Cover

Following the announcement on 8th April 2019 that the FSCS had reached an agreement for a new insurer – Lloyd’s Syndicate 4444, managed by Canopius Managing Agents Limited – to provide replacement cover to eligible Qudos policyholders, Car Care Plan (CCP) sent out new policy details by post at the end of April 2019. Policyholders had until 15th May 2019 to decide whether to accept the replacement cover or not.

Policyholders who did not want their replacement cover were asked to notify CCP at replacementpolicy@carcareplan.co.uk so we could cancel the new policy. We also advised these policyholders that they might be able to claim compensation from the FSCS in respect of the premium originally paid for their Qudos Insurance policy. We have since updated this advice and policyholders who declined their replacement cover up to and including 15th May 2019 should submit a refund request through www.qudosinsurance.dk/premium-return/. Please note that an excess of DDK 1,000 (approximately £118 at the time of writing) will be deducted from any refund.

If You Have Not Received Notification Of Replacement Cover

The most likely reasons for this are:

  • We do not have your current contact details so if a notification was sent out it would not be able to reach you.
  • You live in the Channel Islands or Isle of Man, areas which are not covered by the Danish Guarantee Fee so unfortunately you are not eligible for replacement cover under the arrangement made by the FSCS.
  • We are missing some key information about you such as your full name or date of birth.
  • Your policy is registered in the name of a business so we needed to collect information about the business’s annual turnover to help the FSCS determine your eligibility for replacement cover.
  • You had either a pending partial refund request or pending GAP claim at the date (8th April 2019) the FSCS agreement for replacement cover was announced.
Policies Where We Needed Further Information Or Confirmation Of Business Turnover

Using the contact information available to us we have made best efforts to contact – either via post or email – policyholders where we needed full name, date of birth or confirmation of whether a business’s annual turnover was less than or greater than £1m. The last of these mailings was done at the beginning of July 2019 and the deadline for the receiving any updates was 31st July 2019.

For any policy where we had not received the information needed by 31st July this was taken as confirmation that replacement cover was not required. If you are one of these policyholders you may be able to claim a refund in respect of the premium originally paid for your Qudos Insurance policy. You should submit your refund request through www.qudosinsurance.dk/premium-return/. Please note that an excess of DDK 1,000 (approximately £118 at the time of writing) will be deducted from any refund.

Customers Who Requested A Partial Refund Before 8th April 2019

Again using the contact information available to us we have made best efforts to contact – either via post or email – policyholders who had submitted a partial refund request before 8th April 2019. The purpose of this mailing was to advise policyholders that they would now have to submit their refund request through www.qudosinsurance.dk/premium-return/. It was also highlighted that an excess of DDK 1,000 (approximately £118 at the time of writing) would be deducted from any refund.

If after reading the above you still feel that you would have been eligible for replacement cover but have not received notification please contact replacementpolicy@carcareplan.co.uk.

Claims Payments

The Danish Guarantee Fund are covering any claims from Qudos policyholders where the incident occurred up to and including 7th February 2019, and where the claim was reported to Car Care Plan by 20th June 2019. We have been instructed to reject any claim that falls outside these date parameters.

If you have received notification of replacement cover and you have not made any request to cancel this new policy, then you are able to make claims in line with the policy terms and conditions for incidents that occurred on or after 8th February 2019.

Queries About Partial Refund Requests Submitted Through The Qudos Website

Car Care Plan have no involvement in the processing of refunds submitted through the Qudos website so unfortunately we cannot answer any queries in regard to these. Please direct your questions to claimssupport@qudosinsurance.dk.

5 April 2019

 

Please see the below update in relation to some good news we have received today:

1. The Danish Guarantee Fund has now confirmed that it will pay for claims that occurred after 10 December 2018 (the date Car Care Plan was told to stop making payments) up to 7 February 2019 (the date the DGF no longer had responsibility to pay claims). This means that we can now start the process of paying these claims or arranging for cosmetic and alloy wheel repairs to be carried out. The intention is to action claims payments in chronological order.

2. Canopius, the insurer for the replacement policies, all of which will be effective from 8 February 2019, has also authorised Car Care Plan to register these new policies and to start the process of informing all policyholders of their new cover. As soon as these are registered, we will be in the position to begin paying claims and arranging repair visits on these policies. It should be highlighted that there are some exceptions, in relation to Channel Island and Isle of Man policyholders, along with some commercial customers – we are trying to arrange an alternative resolution for these customers as a matter of urgency.

Clearly, there is a significant amount of work to be completed in relation to the above points. Please rest assured that Car Care Plan will be doing everything possible to complete this work within the shortest timeframes possible.

Frequently asked questions

Q1. I no longer have the vehicle so why are you writing to me.

A. We are writing to you as you had a live Qudos policy which has been transferred to Canopius following the bankruptcy of Qudos Insurance A/S. If you no longer require the policy please continue to read the remaining questions as this offers guidance on what to do if you want to cancel the product.

Q2. My registration number is wrong.

A. We are aware that on a small number of letters the Vehicle registration number was replaced with the policy registration number in error. Please be assured that your policy will have been registered with the same details as your previous policy. There is no need to contact us unless your details have changed.

Q3. I don’t want the replacement policy.

A. We’re sorry to hear that you’ve decided not to keep your replacement policy. If you email us at replacementpolicy@carcareplan.co.uk we’ll ensure that your replacement policy is cancelled on our systems. Please be aware that this action cannot be undone.

You may be able to claim compensation from the FSCS in respect of the premium that you originally paid for your Qudos Insurance policy. More details on the FSCS and how they are assisting Qudos customers can be found at: https://www.fscs.org.uk/what-we-cover/insurance/qudos-insurance-as/

Q4. I’m waiting for a refund when will I receive this?

A. The underwriter Qudos Insurance A/S, an insurer based in Denmark, went into administration in December 2018. As a result, we were instructed to suspend processing and payment of pro rata refunds until further notice from the Qudos administrator. We have now been informed of a new process for requesting a pro rata refund on Qudos products which is for policyholders to submit their request directly via: http://www.qudosinsurance.dk/premium-return/

For help filling out the online application or questions about the new refund process please contact claimssupport@qudosinsurance.dk

Please note that an excess of DKK 1,000 (approximately £118 at the time of writing) will be deducted from your refund. This amount is set by the Danish administrator and Car Care Plan are not involved in this process.

We apologise for any delay you may have already experienced with your request for a refund but this was an unavoidable consequence of Qudos going into administration and the various regulatory processes which followed.

Q5. How much will I get refunded?

A. Refunds within the first 30 days are not handled by CCP so we are unable to comment but you can contact claimssupport@qudosinsurance.dk for help filling out the online application or questions about the new refund process . Refunds after the first 30days will be based on the price that the FSCS paid for your policy on a pro-rata basis.

25 March 2019

Last week we provided the DGF with a list of all claims and refunds for the period 1 September 2018 to 20 December 2018, which covers the pre-bankruptcy period. As of yet we have not received a response; however, we remain hopeful payment will be received shortly. Once this payment is received, we will submit a further request to the DGF in relation to claims and refunds for the period of 20 December 2018 up to 7 February 2019.

We have also recently signed an agreement with Canopious Insurance in relation to the proposed new insurance provision being implemented by the Financial Services Compensation Scheme. This will provide cover for consumers from 8 February 2019. It is expected that this will be finalised in the next few days and we will be writing to all customers with details of their new insurance cover. As this cover will be backdated to 8 February, we will be in a position to recommence claims made after 8 February 2019 as soon as the new insurance cover begins.

14 March 2019

The FSCS has recently updated its website to highlight that they are continuing to work with the Qudos Liquidator and the Danish Guarantee Fund (DGF) to try and ensure a seamless transfer of cover to new providers on 28 March.

From a Car Care Plan perspective, we have recently signed an agreement with the DGF in relation to claims authorised up to 7 February 2019 and are hopeful that there will be progress in releasing claims payments for these claims in the next few weeks.

It is our expectation that both the FSCS and DGF positions will be resolved very shortly.

27 February 2019

As communicated on 7 February, we are continuing to work towards providing an alternative insurance solution for all impacted customers.  Car Care Plan was visited by the prospective new insurer last week and we are very hopeful that we will be in a position to communicate details of new policies shortly.

07 February 2019

All UK policy holders have been contacted today to provide a communication from Qudos’ liquidator, Poul Scmith.  This letter is available here.  Alongside the letter from the liquidator, Car Care Plan has also provided a communication to provide an update of the current position to all policyholders.  This letter is available here.

As highlighted within today’s communication, the FSCS is liaising with an alternative insurer with the aim of providing you with like for like cover for the remaining term of your policy.  It is expected that these discussions will be concluded during February and that you will be issued with new policy information in early March.

There is no need for you to do anything right now. As detailed in your policy, you are protected by the Financial Services Compensation Scheme. If you have a claim in the meantime, you can still call us and we’ll assess your claim as normal.

We’ll be writing to you again in due course to advise on progress towards providing an alternative insurance solution, and what to do if you no longer require the cover. You can rest assured that any new cover we source will be exactly the same as the cover that you have today.

22 January 2019

Paul Newton, the Chief Executive Officer of Car Care Plan, met with the Financial Services Compensation Scheme on Friday 18 January to discuss the current situation with Qudos Insurance.  Both Car Care Plan and the FSCS are working toward the same goal; obtaining the best resolution for UK consumers following Qudos Insurance entering liquidation.

The FSCS is currently working with a UK-Based, A-rated insurer and aiming to effectively take over the remaining Qudos policies from 8 February 2019, which would allow CCP to continue with the current claims handling arrangements. This would have the clear advantage of ensuring that consumers do not need to personally seek reimbursement through the FSCS and would mean that policy holders are protected for 100% of future claim
amounts.

The FSCS only provides protection for UK consumers; therefore we are investigating a similar proposal with the same UK-Based, A-rated insurer for Channel Island customers.

We are very hopeful that the FSCS solution will be agreed and as we receive any news, we will publish it on our website.

18 January 2019

Car Care Plan was instructed by the Liquidator on the 10 th December to stop all Qudos claims payments. At this point there were a number of pending claims across multiple products handled by CCP, and we took immediate action to follow the instruction. Since that date, the Liquidator has provided further clarity on how the liquidation will affect claims payments and refund
requests. This advice can be summarised as follows:

      • Claims submitted prior to 7 th February 2019 will be settled through the Danish Guarantee Fund at 100% of the claim value. CCP has not yet received explicit confirmation from the Liquidator to recommence claims payment activity, and we continue to seek this approval. As soon as we are in a position to resume payments, we will arrange for any outstanding
        repairs to be authorised through suppliers, and any outstanding payments to consumers will be processed. We anticipate that the approval from the Liquidator will be within the next few weeks.
      • Claims submitted after 7 th February 2019 are likely to be subject to the UK Financial Services Compensation Scheme (FSCS) rules, which would mean that they are settled at 90% of the claim value. A solution has been proposed to the FSCS which would see an alternative insurer effectively taking over the remaining Qudos policies, allowing CCP to continue with the current claims handling arrangements whereby at that point 100% of the claim value would be settled. This would have the advantage of ensuring that consumers do not need to personally seek reimbursement through the compensation scheme (FSCS) route.
      • Customers wishing to cancel their policy via the Danish Guarantee Fund are able to do so up until 28 th March 2019. Refunds would be on a pro rata basis, but would be subject to a 1,000DK deduction (C. £120). There would be no compensation for policies cancelled after that date.
        Clearly the current situation is creating a great deal of frustration for all parties, and CCP continues to work closely with all concerned in order to facilitate a resolution that works for our clients and consumers. As the situation develops, we will send out further communications through various channels.

9 January 2019

The FSCS is working closely with the liquidators, the DGF and the Danish FSA to make sure all those affected by the failure of Qudos are compensated accordingly.
There have been a number of updates from Qudos Insurance and the FSCS is committed to updating its page with the latest developments. You can also get notification of the latest updates
by following the FSCS on Twitter and Facebook.

We will continue to keep this site updated as soon as we receive any news.

2 January 2019

Over the Christmas and New Year period, we have been in contact directly with the liquidator appointed to Qudos’ bankruptcy with a view to arranging a communication to all customers to
explain what steps need to be undertaken in relation to outstanding claims and ongoing insurance protection.  We have received a response from the liquidator to state that customers
will receive a letter with more information at the beginning of this year.

Please remember to visit FSCS and Qudos Insurance for the most up-to-date information.

24 December 2018

We have been notified that Qudos Insurance A/S filed for bankruptcy on 20 December 2018.  For further information, please refer to www.qudosinsurance.dk.

A solution has been proposed by a Lloyd’s rated insurer, which has now been presented to the respective regulatory bodies, whereby if accepted could result in the recommencement of claims in the early part of the New Year.

In the absence of this proposal being accepted, we anticipate that UK consumers will then be covered by either the Danish Guarantee Fund (DGF) or the UK Financial Services Compensation Scheme (FSCS).  We are liaising with both DGF and FSCS to clarify the position and will update on this topic in due course, if the outcome of the current Lloyd’s insurer proposal does not progress. The FSCS has set up a web page that details the current situation. The page will be regularly updated, and can be accessed here.

Car Care Plan is working to ensure that all claims against Qudos policies can be paid as soon as possible.

If you have a new claim, please contact us as normal and we will take you through the claims process.

At this stage, we cannot make any claim or refund payments, or complete mobile cosmetic or alloy wheel repairs.