Qudos Insurance Declared Bankrupt
Just as the dust settles on the Setanta debacle we learn that Danish owned Qudos Insurance, which operates in the Irish market, has been declared bankrupt.
In the short term what does this mean?
If you have a policy with Qudos, the Central Bank recommends that you should obtain alternative cover as soon as possible. Technically existing policies remain in force for three months from the date of the bankruptcy but at this stage they are worthless. The guarantee Fund will only cover claims made up to four weeks after notification of the bankruptcy which occurred on 20th December 2018.
Existing claims pending on your policy have been put on hold which means that if, for example, you are in the middle of claiming on your comprehensive policy for damage to your car arising from an at-fault accident you may have no option but to pay for your car repairs yourself in order to get back on the road anytime soon. These claims should ultimately be covered under the Danish Guarantee Fund and therefore you should eventually be compensated in full but it will probably take some time.
If you were involved in an accident that was not your fault and the other driver was insured by Qudos you should consider taking legal advice if you have not done so already. You may have the option of availing of your own insurance if you have a comprehensive policy to have repairs to your vehicle carried out, although this may have an impact upon your premiums or your ability to switch insurers if you have to renew/change your policy in the near future. If you do not have a comprehensive policy you may have no option but to pay for vehicle repairs yourself in the interim period in order to get back on the road. These claims will be covered by the Danish Guarantee Fund and you will receive the compensation you are entitled to in full eventually but again we imagine this will take some time.
If you are in the middle of an injury claim involving another driver insured by Qudos you do not have to do anything at present. The claim will continue to progress as normal and ultimately any Court Order obtained will be submitted to the Guarantee Fund for payment in full. At present no settlement negotiations appear to be on the cards in cases involving Qudos due to payments being out on hold across the board following the liquidation but this may change as matters progress.
Policyholders are being advised to report new claims to the Danish Guarantee Fund provided that the claim is covered by the Guarantee Fund otherwise they must be reported to the bankruptcy estate of Qudos A/S. If you have a policy with Qudos your broker should be able to advise you on what you need to do in the first instance.
According to information published by the Danish Financial Supervisory Authority if your insurance policy is covered by the Danish Guarantee Fund and it would appear that most private motor and home policies are then you should get a premium refund for the remainder of your insurance period subject to a deductible 1000DKK per policy but the curator of the bankruptcy estate will contact policyholders to advise them on what steps to take next.