FSCS to pay out £6.9m to taxi drivers affected by Alpha collapse
British financial compensation scheme FSCS has announced that it is in the process of paying out £6.9m to 9,000 commercial taxi drivers who were insured by Alpha following the Danish insurer’s collapse.
On the 8th May 2018, news broke out that Danish-based Alpha Insurance (who Plan had no policies placed with) had been declared bankrupt, and thousands of drivers received a text message in the evening informing them their insurance had been cancelled with immediate effect.
The Financial Services Compensation Scheme (FSCS) have now made the following statement regarding the situation:
“If you were an Alpha commercial taxi policyholder and have not received a cheque payment inside the next 21 days, please contact us. If you’ve received a cheque but you think the amount is incorrect, you’ll need to contact the broker from whom you purchased your Alpha policy.”
Drivers who may have issues concerning the payment they received are urged to get in contact with the broker they purchased their Alpha policy with.
The FSCS have also publicised that it was not involved in the calculation of driver compensation, citing that the figures were purely based on policy data provided by CUA to the liquidator, who then checked and verified the information before passing it on to the scheme for payment.
“Cheques are being sent out currently and over the coming days,” said the FSCS, also stating that the Danish Guarantee Fund does not offer protection for commercial taxi policies.
Those with existing claims have been instructed to continue liaising with their assigned claims handler.