Acasta European Insurance Ltd was a Gibraltar-based insurance company that was placed into liquidation in February 2020 The company had incurred significant underwriting losses, and the Gibraltar Financial Services Commission (GFSC) suspended the company’s license and appointed external administrators to oversee its liquidation.
Many Acasta European Insurance policyholders were left unsure about their insurance coverage and claims, leading to concerns about how they would be compensated for their losses If you were an Acasta European Insurance policyholder, you may be eligible to receive compensation from the Financial Services Compensation Scheme (FSCS).
What is the Financial Services Compensation Scheme?
The FSCS is a UK-based fund that was established to provide compensation to consumers if their financial services provider becomes insolvent or can’t pay their claims The scheme is funded mainly by a levy on financial services companies, which are required by law to pay into the scheme.
The FSCS covers many financial products, including insurance policies, investments, and deposits The amount of compensation you’re eligible for depends on the type of financial product and your particular circumstances.
How does the FSCS cover insurance policies?
The FSCS provides compensation to policyholders for their insurance policies when their insurer is unable to pay claims due to insolvency The FSCS covers most types of insurance policies, including motor, home, travel, and business insurance.
The amount of compensation provided by the FSCS depends on the type of insurance policy and the policy’s terms and conditions For instance, the FSCS covers 100% of any claims made for compulsory insurances, such as motor or employer’s liability insurance But for other types of insurance, such as home or pet insurance, there’s a limit to the amount of compensation provided.
How does the FSCS compensation process work?
If you’ve an insurance policy with a defunct insurance provider, you should first contact the insurer’s liquidator or administrator to find out whether your claim can be processed If your claim can’t be processed, or if the insurance provider has already been declared insolvent, you may be eligible for compensation from the FSCS.
To receive compensation from the FSCS, you should fill in a compensation form online or print it, fill it in, and send it to the FSCS Acasta European Insurance compensation. You’ll be required to provide evidence of your policy, such as a certificate of insurance or a copy of your policy documents.
After receiving your application, the FSCS will review your claim and eligible losses and determine how much compensation you’re entitled to receive If your claim is approved, you’ll receive compensation from the scheme.
What compensation can I expect for Acasta European Insurance?
If you have an insurance policy with Acasta European Insurance, you may be eligible for compensation from the FSCS The FSCS compensation limit for insurance policies is £85,000, This means that the maximum amount of compensation you can receive for your insurance policy losses under the scheme is £85,000 per person, company, or claim.
However, it’s important to note that the compensation limit applies per policyholder, per company, and per claim This means that the FSCS won’t provide compensation to every policyholder for the full amount of their losses.
The FSCS may cover your insurance policy loss up to a maximum of £85,000 and can provide compensation for several claims you have made if each is below £85,000.
For example, if you’ve a pet insurance policy with Acasta European Insurance that covers your pet’s vet bills, and you’ve made two claims for vet bills worth £40,000 and £50,000, respectively You’ll only be compensated by up to £85,000 for your two claims in total – it means you’ll only receive £30,000 in compensation.
Conclusion
The collapse of Acasta European Insurance Ltd has impacted many policyholders who would have been uncertain about their coverage and claims FSCS compensation can help policyholders get back on their feet by providing them with financial support that they require.
If you’ve an insurance policy with Acasta European Insurance, it’s important to check whether you’re eligible for compensation from the FSCS The FSCS website provides more detailed information on how the scheme works and the compensation limits for insurance policies.
Regardless of what happens during the compensation process or the amount of compensation you may receive, the FSCS often provides much-needed relief to policyholders who have encountered financial losses due to the collapse of their insurance provider.