139/98
17 August 1998
BIG - INDEPENDENT DISCUSSION FORUM
Motorists and householders are being warned about a report on the Internet under the heading - BIG - Independent Discussion Forum.
Few details are provided but neither BIG or the European Insurance Organisation which are referred to on the site is permitted to insure UK third-party motor risks.
Motorists are reminded that third-party insurance must be taken out with an insurer authorised to carry on motor business in the UK or with a company with its head office in another European Economic Area (EEA) member state which is permitted to provide such insurance in the UK.
It is unclear how the insurance scheme is intended to operate but potential policyholders should be aware that where insurance is placed with an insurer not permitted to carry on insurance business in the UK, policyholders will not be protected by the provisions of
the Policyholders Protection Act.
NOTES TO EDITORS
1. BIG was wound up in the High Court on 8 July 1998 on a petition from the Secretary of State for Trade and Industry in the public interest. The Internet report claims that it is continuing to trade and that it has moved its operation offshore.
2. Section 143 of the Road Traffic Act 1988 lays down the legal requirements for third-party motor insurance.
3. The Policyholders Protection Act 1975 (as amended) protects policyholders whose insurance companies have become unable to meet their liabilities.