All 105,000 policyholders of MCE Motorbike Insurance will lose their coverage – what it means for you.
MCE Insurance Company, which was one of the UK’s major motorbike insurers, will terminate all of its remaining 105,000 policies after entering administration last year. Despite the insurer’s initial pledge to uphold existing coverage, the decisions have been taken to cancel all the remaining policies.
For policies taken out prior to 9 November 2021, what this means is:
- Car or van insurance cover will end at midnight on 14 January 2022.
- Cover for motorbike or scooter insurance will end at midnight on 31 January 2022.
Your MCE Insurance policy will remain in force until these dates and you’ll receive a pro-rata refund from the Financial Services Compensation Scheme (FSCS) for 90% of any unused months on your policy. You’ll be reimbursed by a cheque which will; arrive in the post.
Who is entitled to a refund?
All MCE insurance customers who got policies before November 9, 2021 will be eligible for partial reimbursements. Customers affected by the breach will be reimbursed 90% of any unused months on their policy according to the Financial Services Compensation Scheme (FSCS).
You DO NOT have to do anything; a cheque from the FSCS will arrive in the mail automatically.
What’s happening to my no-claims?
I personally have spoken with 5 bikers directly, all of who have informed me that they have had direct conversations with MCE that no-claims will be honoured. However, please make sure that you contact MCE as hearsay this should not be relied upon. Do expect long call wait times so pop your favourite Tv show on in the background.
What should I do if I have an ongoing claim with MCE?
If you’ve recently had an accident and made a claim with MCE, you won’t be required to do anything – but the FSCS will contact you about your MCE claim instead. That’s because prior claims have been handed over to the scheme, which is now handling them.
When an insurance provider fails, their policies will either continue under the supervision of a new insurer or end prematurely. If your insurance policy ends early, the FSCS protects 90% or 100% of your insurance premium pro-rata till the end of the contract, depending on the terms.
If your claim is valid, the FSCS will reimburse you. If you need to make a claim before your policy expires, contact MCE as soon as possible.
Why is my motorbike policy being cancelled?
MCE Insurance Company, which is currently known as Green Realisations 123 sold a range of insurance cover, from a motorcycle, private car and even van insurance, through broker MCE UK. However, both firms were part of the same parent group.
It, unfortunately, happened to be the case that this parent group went into administration on 19 November 2021, with consultancy firm Kroll appointed as administrator leaving many bikers uninsured.
At the time, the firm said that all prior MCE Insurance Company insurance policies would be maintained until they expired. However, the insurer has informed customers that their coverage will be terminated due to the company’s “financial position.”
I’m panicking about my insurance, what do I do?
Those who’ve taken up MCE policies since November 9, 2021 aren’t affected as their insurance is underwritten by Sabre Insurance Group, not MCE itself.
If this is the case for you, you’ll continue to be insured and may make any policy modifications or claims as usual by contacting the broker arm of the firm, MCE UK.
If you’ve got any questions about your refund, FSCS’s online chat service should be able to help.
If your policy was taken out prior to November 9, 2021l, If you want to keep driving your motorbike after these dates, you’ll need to get new coverage because it is illegal to drive uninsured.
Legal Disclaimer: I’m not a qualified professional. I’m a hobbyist nerd who is just trying to get gather the information together to help the biker community. Please make sure you always check the information relating to your individual circumstances and don’t rely on my advice.