The chief executive of Insurance Ireland is advising the 50,000 Irish customers of Danish insurer Qudos to contact their broker to avail of alternative cover.
Kevin Thompson told RTÉ’s Today with Sean O’Rourke show that cover will be provided by an alternative insurance provider at no extra cost.
Qudos, which filed for liquidation in Denmark on 27 November, had mostly sold motor insurance policies to Irish customers via agents and brokers, but there were a number of property insurance policies according to Mr Thompson.
Although Insurance Ireland says that alternative cover will be provided, it will not pay out on any claims and expects Qudos give more detail on the payment of outstanding claims within the next two weeks.
Qudos is authorised by the Danish Financial Supervisory Authority and operates in Ireland on a freedom of services basis.
Mr Thompson said it remains to be seen whether outstanding claims will be paid out by the Danish Financial Supervisory Authority or the Irish Insurance Regulator.
We have published an update on Qudos Insurance A/S. We are recommending that Qudos policyholders contact their broker to arrange alternative cover. Qudos is regulated by the Danish Financial Supervisory Authority and is in liquidation. https://t.co/pxKHrPHCXn— Central Bank of Ireland (@centralbank_ie) December 5, 2018
Ireland is just one country where Qudos sold policies, other countries include France, Greece and the UK.
It is incumbent on people to check the insurance disc in their cars to determine if Qudos was the underwriter of their policy.
If that is the case then Mr Thompson advises them to contact their broker immediately to organise alternative cover which will remain in place until their renewal date at no extra cost.
“There is a solution in place. Other providers have stepped in such as Petrona who are a general agent.”
However, he admitted there could be a “small” administration charge.
Ideally the Danish compensation fund will step in ensure that all outstanding Irish claims will be fully paid, said Mr Thompson.