|You may have received a letter from Grant Thornton regarding your Gap Insurance policy.
Firstly, I am delighted to confirm that Direct Gap Insurance and our parent company Motor Gap Ltd are in robust financial health. The Liquidator is referring to Enterprise Insurance Company as being insolvent in his recent communication to you.
Secondly, I can only apologise for the letter that has been issued by Grant Thornton. This letter is extremely confusing and refers to cancelled insurance policies. These are car insurance (compulsory road risk) policies, not GAP insurance policies.
Thirdly, all GAP insurance policies are still valid and in place and claims are being paid on a daily basis by the Financial Services Compensation Scheme. Currently, the FSCS is telling us there is a possibility that the Liquidator could cancel GAP insurance policies. In that event, we are confident that, we will be able to offer you a no cost replacement cover on exactly the same terms and conditions as your current Enterprise Insurance policy. If you do not wish to continue cover, then our understanding is that you will be entitled to a pro-rata refund of premium less 10%, which will be paid to you by the FSCS.
All new business written by Direct Gap Insurance is now being underwritten by the A+ rated insurer AM Trust International, who are completely unaffected by this situation.
Until we know for certain whether or not the Liquidator is going to cancel your policy, we are unable to give you more information, but there is no cause for concern with your cover.
Any update we receive we will communicate with you immediately.
Please feel free to get in touch if you require any further information.