Approximately 50,000 Irish motor insurance customers have woke up to the news that they have no guarantee of cover after Danish insurer, Qudos, went under.
The company – which mostly would have sold motor insurance policies to customers in Ireland via brokers – have put payouts on hold, saying it will not be paying out on any claims “at the moment” following liquidation.
Qudos filed for liquidation in Denmark on November 27.
Customers affected by this fiasco will have to move quickly to find new policies and the Central Bank of Ireland has said it “strongly recommends, based on the uncertainty around the payment of claims, that affected customers contact their insurance broker to arrange alternative insurance cover.”
If the company decides, indefinitely, that unpaid claims will not be settled, Irish customers will have to look for compensation if they don’t want to pay for the cost of the claims themselves.
Liquidators who now control the company, and whose job it is to secure as much money as possible for Qudos’s creditors, said they expect to provide a further update within the next couple of weeks.
Qudos is authorised by the Danish Financial Supervisory Authority and operates in Ireland on a freedom of services basis.