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Liquidators Unable To Sell Western Pacific; Policies Cancelled

Fuseworks Media
Fuseworks Media
Liquidators Unable To Sell Western Pacific; Policies Cancelled

All insurance policies held by Western Pacific Insurance have been cancelled after the liquidators were unable to sell, transfer or assign the business. David Ruscoe and Simon Thorn, of Grant Thornton New Zealand Ltd, who were appointed liquidators of the Queenstown-based insurance company on April 1, said in a letter to policy holders that as a result of their investigations they had determined that Western Pacific was unable to provide insurance cover to policy holders.

"Under Section 269 of the Companies Act 1993, we disclaim the insurance policies as onerous property, the effect of which is the cancellation of all policies immediately," they said.

Since their appointment, the liquidators have been assessing the business and reviewing and checking all client insurance policies in respect of which premiums have been paid, are registered with the company and are valid.

"Our priority is to ensure that reinsurance with offshore companies can be collected. Once we confirm this amount, we will be in a better position to progress the individual claims," they said.

To help policy holders find alternative insurance cover, the liquidators have entered into a preferred supplier agreement with Tower Insurance Ltd.

"Under this agreement Tower has agreed to consider offering cover to all New Zealand based Western Pacific policy holders at current market rates. Normal underwriting criteria will apply. Tower can be contacted on 0800 847 020.

"For those with claims for losses incurred before the cancellation of their policies, our claims department is operational and can be contacted on (09) 365-1642. "We hope to report again to policy holders by May 31, 2011," they said. 

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