Recognising the needs of road accident victims to be paid on time, especially given Covid (“C19”) domestic cashflow difficulties, the QuickSure administrators are maintaining creditor dividend payments.
We pay tribute to all those, who have transferred their office-systems to home-working. For our part, making financial payments systems home-working-friendly has been intricate; office-based systems tend to have more built-in controls.
This difficulty is compounded in insurance insolvencies, were many of the creditors are vulnerable or poor. As educated professionals, we often forget the ‘unbanked’.
Lawyers for years have obtained instructions over the phone, but that’s not so easy when dealing with a brain-damaged paraplegic client. However, lawyers, like accountants, are finding solutions to such C19 difficulties. Whilst the world understandably moves to accommodate insolvency law to the C19 reality (i.e. introducing moratoriums) we should not forget how the existing regime, can be tailored to fit the new norm.
Working in tandem with IMS, Hassans, the FSCS & reinsurers, we the QuickSure Insurance Ltd (“QuickSure”) Joint Administrators, Grant Jones & James Oton (the “Administrators”) continue to process & make payments to protected policyholders; this is despite C19 & working-from-home (“WFH”) constraints. We are especially pleased to note that we recently agreed a medically & legally complicated, very large personal injury & protected policyholder claim. However, like others in the insurance industry, we are noting a perhaps C19-related uptake in fraudulent claims & dishonesty.
Like any company in administration, QuickSure is subject to a moratorium. The moratorium generally bars legal proceedings against QuickSure. In contravention of the moratorium, claims should not be initially submitted to a court; rather claims should be submitted to the Administrators, to be rejected or accepted by the Administrators & if so accepted, allocated a particular creditor priority. However, with medically & legally complicated, very large claims, there is merit in following a standard pre-litigation mediation process. This process can & did in this case result in a ‘pre-agreed insolvency claim’; rather than the standard ‘mediation settlement’. Once submitted to the Administrators, the ‘pre-agreed claim’ is admitted immediately as a protected policyholder claim. We are happy to note that like court processes, mediation appears to have morphed into a WFH-friendly process. Indeed, for the severely injured, a WFH environment suits. Insolvency, whilst very process-driven & thus perhaps hard to change to the WFH environment, has proven in this case to be amenable to C19 forced changes. Our biggest problem now, with such large claims, is to arrange WFH secure payments; but that’s a good problem to have.
Notwithstanding C19, the Administrators will continue to oppose all fraudulent claims. Wherever possible the Administrators will seek to recover damages from those involved in dishonest conduct. However small a claim the Administrators pursue against the dishonest, these dishonesty-based damages claims send the right message & enhance the QuickSure estate. The Administrators are happy to have worked with IMS & others, in a recent successful damages claim against a fraudulent claimant.
The QuickSure insurance Ltd (“QuickSure“) Joint Administrators, Grant Jones & James Oton (the “Administrators“) continue to process & make payments to protected policyholders in the WFH environment. This month, having co-ordinated with QuickSure‘s worldwide reinsurers, payments will be made to larger protected policyholders, via reinsurers. Understandably, given the QuickSure insolvency, reinsurers required trust accounts. Notwithstanding WFH constraints & how C19 was affecting different jurisdictions, in different working practices, all actors managed to agree a speedy transfer of monies. C19 has required of reinsurers, different methodologies. Insolvency only adds to the C19 induced difficulties. If QuickSure is anything to go by, the reinsurance industry should take a pat-on-the-back. It operated well in novel circumstances.
The Administrators biggest concern is the failure of lawyers to appraise themselves of insolvency: thereby doing their clients a disservice. There is a moratorium in force. That means that court action is generally barred. A moratorium is in force, as claims should be submitted via the insolvency process. Ultimately if claims are not submitted within the insolvency process, those claims will be forfeited. The Administrators take this press release opportunity to further remind lawyers, submit their full client claims in early course to the Administrators.
On the 23/7/20, the Administrators issued their 1st Report indicating that in all material matters, the QuickSure Administration was progressing in line with the original Proposal. However this was subject to one ‘future’ proviso, that of C19. Whilst all stakeholders have to date managed well, in adapting to C19 conditions, it is acknowledged that there maybe a future lag in claims processing. This lag could increase the length of the Administration, with a resultant knock on effect on Administration costs.