A leading after-the-event insurance supplier for personal injury and clinical negligence claims has gone into liquidation.
Gibraltar-based LAMP Insurance posted a message on its website confirming an application to be placed into liquidation was submitted last Thursday.
The fallout could pose a major headache for claims firms who have taken out insurance with LAMP on behalf of injured clients. The statement says that insurance policies that have not expired remain in force, but as the company is insolvent it is unable to make any claim payments.
It adds: ‘Policyholders should immediately consider acquiring alternative insurance protection. Where policyholders have purchased policies from the company through an insurance broker, solicitor or other intermediary, they should consult that person to seek advice as to what options are open to them.’
LAMP states that it is still considering all options, including a potential sale of the business, before the Supreme Court of Gibraltar hears the liquidation application on 31 May. But the website message adds: ‘The possibility that a sale may arise should not be relied upon by policyholders when considering acquiring alternative insurance products.’
The Gazette understands LAMP was a significant provider with a substantial percentage of the clinical negligence market. Market experts say claimants have experienced problems in recent years with recovering premiums from defendants in clinical negligence cases.