Alpha Insurance Payment Terms (credit providers)

Terms of payment

These terms apply if your policy with Alpha Insurance A/S (in bankruptcy) (“the Firm”) had been financed by one of the following premium finance firms (a “Credit Provider”) and has been disclaimed by the Liquidator:

CLOSE BROTHERS LTD (trading as ‘Close Brothers Premium Finance Limited’), of 10 Crown Place, London EC2A 4FT

To the extent that you are entitled to any compensation from the Financial Services Compensation Scheme (“FSCS”) in respect of the unexpired portion of a premium that you paid for the policy issued by the Firm, then FSCS has arranged to pay any such compensation to the Credit Provider on your behalf, and you will not be able to make a separate claim to the FSCS in this regard. The Credit Provider may be entitled under the terms of your credit agreement with them to apply the compensation to pay off or reduce your debt to the Credit Provider.  On FSCS paying your compensation to the Credit Firm, all of your rights against the Firm and any third party in relation to your policy will be automatically assigned to the FSCS.  In the event that FSCS decides not to pursue recoveries using those rights, then it will, if you request so in writing, reassign those rights back to you. By accepting that FSCS will pay compensation to the Credit Provider in relation to your Alpha policy premium, you agree and acknowledge as follows:

  1.     You are claiming compensation for losses arising as a result of FSCS-protected business with the Firm (“the Claim”).

  2.     You agree that a payment by FSCS of compensation to the Credit Provider in respect of the your Claim will be in full and final discharge and settlement of the obligations of FSCS, under the relevant rules and laws.1 You understand that any payment of compensation by FSCS to the Credit Provider in respect of your Claim will fulfil your entitlement to compensation from FSCS in respect of the Claim and that you will not be able to make a separate claim to FSCS in this regard.

  3.      As a condition of FSCS paying compensation to your Credit Provider, your Credit Provider has released its security over the policy. You acknowledge that all your rights against the Firm will pass to and be automatically assigned to FSCS absolutely on the payment of compensation (or any part of it) by FSCS to the Credit Provider.

  4.      You acknowledge that all your rights against any other person (which constitute a “Third Party Claim” as defined in paragraph 14 below) will pass to and be automatically assigned to FSCS absolutely on payment of compensation (or any part of it) by FSCS to the Credit Provider.

  5.      On payment of compensation (or any part of it) to the Credit Provider in respect of your Claim, you will no longer have the right to make any claim against the Firm or any other person in respect of the Claim or a Third Party Claim, and the right to make any such claims will be vested in FSCS. Any sums that would otherwise be payable to you in respect of the Claim (including any dividend or other payment in a liquidation or compromise with creditors or scheme of arrangement) or a Third Party Claim will be paid instead to FSCS.

  6.      You will not exercise any right or remedy that you may have or retain against the Firm or any other person arising out of, or in connection with, the Claim or any Third Party Claim, namely:

    a) to rescind, set aside, avoid or otherwise alter any contract or obligation;
    b) to set off, or reduce liability in respect of such a contract or obligation; or
    c) any other right or remedy that is either personal to you or cannot be assigned or both.

  7.       If you recover any money or assets in respect of the Claim or in respect of a Third Party Claim, you will immediately pay or transfer it to FSCS.

  8.       If the payment of some or all of the compensation should not have been made for any reason, you will immediately procure that such compensation is fully paid back to FSCS, without any deduction or set-off, plus interest.

  9.       If following the disclaimer of your policy with the Firm you make a claim under it in respect of an event that took place prior to the disclaimer, you will immediately inform FSCS and you agree that FSCS shall be entitled to set off against any compensation payable in respect of that claim the total amount of any compensation that it has paid to the Credit Provider in respect of your Claim.

  10.      You will give all reasonable co-operation and assistance that FSCS asks you to give in connection with any investigation or pursuit by FSCS of claims corresponding to the Claim and/or of any Third Party Claim, including providing documents, providing statements, swearing statements of truth and attending court to give oral evidence. If you make or give (or have made or given) any false or misleading statement, affirmation, or other evidence, you agree to indemnify and protect FSCS against any loss, liability, expense or cost that it may incur directly or indirectly as a result.  You also agree, if asked by FSCS, to become a party to any proceedings brought by FSCS in respect of claims corresponding to the Claim and/or of any Third Party Claim.

  11.      You will give such further help or authority that FSCS from time to time may require to give full effect to the transfer of your rights and/or claims to FSCS under and for the purpose of this agreement.  If the automatic assignment referred to in this document is ineffective in transferring any such rights and/or claims to FSCS, then FSCS will still be entitled to benefit from those rights and/or claims and will be entitled to any proceeds of them. All such proceeds will be paid to FSCS. To the extent that the automatic assignment referred to in this document is ineffective in law to pass any rights, claims or causes of action to FSCS, you irrevocably and unconditionally appoint FSCS as your agent in respect of such rights, claims or causes of action and agree that FSCS may pursue or enforce them on your behalf in whatever manner it considered appropriate.

  12.      FSCS may give a valid receipt to any person in respect of the Claim and/or any Third Party Claim.

  13.      FSCS will conduct all proceedings and settlement negotiations regarding claims assigned to it reasonably and with due regard to your interests as well as its own.

  14.      In this document, “Third Party Claim” means any right, claim or cause of action that you have or may have against any person other than the Firm or against any fund or property in the hands of any person other than the Firm in connection with or arising out of the circumstances giving rise to the Claim or otherwise relating to the Claim, whatever the nature of such claims.

  15.      This agreement is without prejudice to any rights which FSCS may have or acquire against the Firm and/or any third party and to the extent that such rights conflict with the terms of this agreement, FSCS may elect, to which election you consent, which rights and claims it shall pursue. 

  16.      To the extent necessary to give effect to any right, claim or cause of action by FSCS, this agreement shall be severable in its terms. 

  17.      This agreement shall be governed by and understood in accordance with English law and you irrevocably accept the exclusive jurisdiction of the English courts in respect of all matters arising out of or in connection with it.

  18.      The automatic assignment detailed above is without prejudice to any of FSCS's other rights, in particular its right to make a determination in accordance with its Rules that it shall, upon payment of compensation, immediately and automatically be subrogated to all or any part of the rights and claims of the Policyholder against Alpha and/or any third party in respect of or arising out of the Claim.

 

Consent to FSCS use of your personal data - Data Protection  

By accepting payment of the compensation offered by FSCS in respect of the Firm:

  • You consent to FSCS, and any third party acting on their behalf, collecting and processing your personal data (which may include your name, contact details and bank details) in order to handle your claim for compensation or pursue recovery proceedings or otherwise for the proper exercise of their statutory functions or to comply with legal or regulatory requirements. 
  • You agree that FSCS, and any third party acting on their behalf, may obtain your personal data from relevant third parties (such as the relevant firm in default and/or its insolvency practitioner) in order to process your claim for compensation or pursue recovery proceedings or otherwise for the proper exercise of their statutory functions or to comply with legal or regulatory requirements.
  • You authorise such relevant third parties to release such personal data to FSCS, FCA and PRA or any successors to them and any third parties acting on their behalf.
  • In addition, you agree that this may include obtaining, processing and disclosing of your personal data by FSCS to, or to FSCS by:

- the Financial Conduct Authority (“FCA”) and the Prudential Regulation Authority (“PRA”) and any successors to them and third parties acting on their behalf to assist them in carrying out their statutory functions or otherwise to comply with legal or regulatory requirements; and/or

- the FOS where FSCS considers it would assist the FOS in carrying out their functions in helping to resolve complaints and/or the FSCS in resolving claims for compensation swiftly or pursuing recovery proceedings, for example ensuring there is no double payment or otherwise to comply with legal or regulatory requirements.

  • You agree that FSCS, FCA and PRA or any successors to them may outsource its statutory functions in processing your claim for compensation or pursuing recovery proceedings to carefully selected third parties. This may involve the sharing of your personal data between FSCS, FCA, PRA and such third parties.

Explanations applying to the Consent: FSCS means the Financial Services Compensation Scheme Limited and includes its officers, employees, servants and agents. The FCA and/or PRA may act as agent of FSCS or on its own behalf.  Personal data has the meaning set out in section 1(1) of the Data Protection Act 1998.

FSCS will process information about you and your claim in accordance with the Data Protection Act 1998. For more information about how we handle your personal data, please see our Privacy Policy.

 

Declaration

By accepting payment of compensation offered by FSCS in respect of the Firm you make the following declarations:

  • that you were not responsible for, nor contributed to, the Firm’s default;
  • that you have not received any compensation of any kind in respect of the Claim;
  • none of the monies used to enter into, or to pay any premium in respect of, the insurance contract giving rise to your claim was acquired in the course of money laundering or in any way comprised of or connected to the proceeds of crime;
  • that your claim against the Firm is not subject to any charge, lien, trust, assignment, negative pledge or other encumbrance or right in favour of any third party;
  • that you are duly authorised to give valid receipt for any compensation paid and to agree to the terms for the offer and payment of compensation. 

 1 The rules of the Financial Services Compensation Scheme made by the Prudential Regulation Authority and/or the provisions of the Financial Services and Markets Act 2000, the Banking Act 2009 and the Financial Services Act 2010, the Financial Services Act 2012 and all subordinated legislation made under any of these statutes (in all cases, as amended).