More than 100,000 motorcycle insurance customers have been caught up in the collapse of MCE as it cancels policies taken out on or before 9 November 2021.
What happened to MCE motorcycle insurance?
While MCE UK is still offering quotes for motorcycle insurance, the problems started on 5 November 2021, when MCE UK’s sole underwriter – Green Realisations 123 Ltd – had its permission to write new insurance suspended.
Sabre Insurance PLC stepped in on 10 November as a new underwriter, then on 19 November Green Realisations 123 Ltd went into administration.
While new business was underwritten by Sabre, all customers with policies underwritten by Green Realisations 123 Ltd should by now have had a notification that their insurance is to be ‘disclaimed’ on 31 January 2022, which means they’ll no longer have cover.
Will MCE customers get a refund?
Those who paid for their policies up front will – according to MCE’s website – will see processing of refunds starting 1 February 2022. However, the company goes on to say that customers ‘may be eligible for a refund for the unused portion of their insurance by the Financial Services Compensation Scheme (FSCS).’
While riders will need to be looking for new cover immediately, it’s important to note that if they cancel their policy before 31 January, it will be in line with the usual terms of business, which will incur a £45 admin fee and a £30 additional premium.
This does NOT mean you have had insurance cancelled or refused
Any riders affected by this collapse will not have had insurance cancelled or refused in such a way that needs highlighting when taking out a new policy with another provider.
Will MCE customers lose their no claims discount for the year?
Those whose policies are disclaimed may lose any no claims discount (NCD) that would have been due at the end of the annual term, though some insurance providers trying to avoid this happening. Bennetts aims to help riders affected by the failure of MCE, by upgrading those who are claim-free for more than nine months to a full 12 months NCD.
Will those who’ve made an insurance claim still be paid out?
MoneySavingExpert has reported that anyone with an existing claim on their MCE Insurance policy will be passed onto the FSCS, which will be in touch. If the claim is valid, it’ll be paid from this compensation fund, though 100% of the claim will only be paid if it’s to a third party.
First party motor claims (ie where there’s no other person involved) will only be paid to the value of 90% of the claim.
What disclaimed MCE customers MUST do now
Check comparison websites to get an idea of the price you’ll need to pay for cover, but also call the established, trusted insurance providers direct as the new FCA rulings mean that you won’t find the same introductory pricing of previous years. You can read exactly what this means in our insider’s guide to motorcycle insurance, here.
With over 100,000 people now looking for new insurance, expect wait times to be high, but stick with it (and it’s worth noting that the Bennetts call centre is open on Sundays). Try an online quote first, but if you’re unable to get a quote online for whatever reason, do make a phone call as insurance providers like Bennetts – which is one of the UK’s largest brokers and has been trusted by riders across the UK for 91 years – can help find the cover you need from a large panel of very well established underwriters.
When getting any quote, check carefully what cover you need, including the mileage you do and what adds-ons you require. Bennetts includes many common modifications as standard, so a road-legal exhaust or new screen – for instance – won’t affect your policy price.
Bennetts also offers free membership to BikeSocial for all customers who buy direct from its website or over the phone, which gives you access to hundreds of fantastic discounts on riding kit, track-days, training and much more.
Wherever you choose to insure your bike next, you’ll be able to have your policy start when the MCE one closes on 31 January to avoid paying the cancellation fees that it’s imposing on customers left having to find new cover.
Unfortunately some MCE customers might see prices increase over what they paid previously, but don’t let this very unusual situation put you off motorcycling; it’s not a reflection of the quality of service and cover provided by the established and trustworthy brands that are available to you.
