Qudos Insurance A/S declared bankrupt

The Danish insurance company Qudos Insurance A/S has been declared bankrupt. Policyholders can cancel their policy, if they wish to do so. The policy will be cancelled 3 months after the declaration of the bankruptcy in Statstidende. The Danish Guarantee Fund for non-life insurance undertakings will cover some claims incurred 4 weeks after the liquidator has notified the policyholders of the bankruptcy.

Contact

Director, Communications

Søren Møller Christensen
+45 33 55 82 99
smc@ftnet.dk

On 20 December 2018, the Maritime and Commercial High Court has on request from The Danish Financial Supervisory Authority declared the insurance company Qudos Insurance A/S under frivillig likvidation (“under frivillig likvidation” means in voluntary liquidation) bankrupt. The Danish Financial Supervisory Authority filed for bankruptcy because The Danish Financial Supervisory Authority received updated information about Qudos Insurance A/S’s financial situation, and assessed that Qudos Insurance was insolvent.

 

Policyholders can cancel their policy, if they wish to do so. The policy will be cancelled 3 months after the declaration of the bankruptcy. The Danish Financial Supervisory Authority encourages the policyholders to cancel their policy with Qudos Insurance and buy a new policy with another insurance company if possible. This is due to the fact that Qudos has been declared bankrupt and unless the policyholder is covered by the Danish Guarantee Fund for noon-life insurance undertakings, it might take several years to be compensated and then probably only partially compensated in a form of a dividend from the bankruptcy estate. The policyholders must be aware that in the situation that the insurance contract is not covered by the Guarantee Fund, it can last several years before the policyholders can get the premium refund repaid, and only in the form of dividend. The refund premium is a part of the pre-paid premium that covers the period that no longer will be covered because of the bankruptcy.

 

The bankruptcy means that policyholders no longer can report their claims to Qudos Insurance A/S. Policyholders must report their claims to the Danish Guarantee Fund for non-life insurance undertakings (hereinafter Guarantee Fund), provided that the claims are covered by the Guarantee Fund. Otherwise, policyholders must report their claims to the bankruptcy estate of Qudos Insurance A/S. Further information can be found at the homepage of the bankruptcy estate, www.qudosinsurance.dk

 

The Guarantee Fund covers claims incurred before the date of bankruptcy and four weeks after the liquidator has notified the policyholder of the bankruptcy. If a policyholder has a claim that is covered by the Guarantee Fund, the claim must be reported as soon as possible and no later than 20 June 2019. Claims reported to Qudos Insurance A/S before 20 December 2018 are regarded as reported to the Guarantee Fund or the bankruptcy estate of Qudos Insurance A/S. The Guarantee Fund will publish information to policyholders on a continuous basis, including how to report a claim that has not already been reported to Qudos Insurance, at http://www.skadesgarantifonden.dk/Sider/Forside.aspx. Information can also be found at the homepage of the bankruptcy estate,www.qudosinsurance.dk

 

Claims, which are not covered by the Guarantee Fund, must be reported to the curator of the bankruptcy estate. Information about the curator and how to report a claim to the curator can be found on Qudos Insurance A/S’ website: www.qudosinsurance.dk

 

The curator of the bankruptcy estate, attorney-at-law Boris Frederiksen, will contact all policyholders in Qudos Insurance A/S to inform and guide them on how to act.

 

The Danish Financial Supervisory Authority has opened a hotline (+45) 41 93 35 00 for enquiries about the bankruptcy in Qudos Insurance A/S. The hotline will be manned on weekdays between 10am and 14pm CET.

 

In the attached Q&A, the Danish Financial Supervisory Authority has answered the most commonly asked questions that arise in a bankruptcy situation.

 

Q & A regarding the bankruptcy of Qudos Insurance A/S

Question     

Answer  

1. Who is Qudos Insurance A/S and what has happened? Qudos Insurance is a Danish insurance company, which operates in Denmark and is authorized to write business in Belgium, France, Greece, The Netherlands, Ireland, Italy, Jersey, Norway, Spain, Great Britain, Sweden and Germany on a free-dom to provide services basis. On 27 November 2018, Qudos Insurance A/S announced that the company was placed into liquidation. On 20 December 2018, the Danish FSA filed a petition for bankruptcy.
2. Is my policy still valid? Yes, your policy is still valid. The bankruptcy gives you the right to cancel the policy immediately, and the policy is automatically cancelled 3 months after the bankruptcy has been published in Statstidende. You are encouraged to cancel your policy and buy another one in another insurance company if possible.
3. I have a claim, what should I do? If your claim has already been reported to Qudos Insurance A/S, you do not have to do anything further. If you have not reported your claim already, you have to report it to the Danish Guarantee Fund for non-life insurance undertakings or the bankruptcy estate. The Danish Guarantee Fund will in the beginning of January 2019 on its website publish information about how to report a claim to the Danish Guarantee Fund, that has not been reported to Qudos Insurance. You should report your claim as fast as possible and no later than 20 June 2019 if your claim is covered by the Danish Guarantee Fund for non-life insurance undertakings. For further information please refer to the homepage of the bankruptcy estate, www.qudosinsurance.dk

4. How do I determine whether to report my claim to the Danish Guarantee Fund for non-life insurance undertakings or the estate of bankruptcy?

The Danish Guarantee Fund for non-life insurance undertakings covers claims in the following categories:
  • Policyholders with private insurance policies

  • Third-parties protected from personal injuries or property damage according to motor vehicle liability insurance

  • Third-parties protected from personal injuries according to other liability insurance

  • Collective insurance to the extent that an insurance policy of its kind corresponds to the covered individual insurance policies

  • Claims regarding building fire on all types of real estate

 

The Danish Guarantee Fund for non-life insurance undertakings covers claims incurred before the date of bankruptcy and four weeks after the liquidator has notified the policyholder of the bankruptcy.

 

If your claim does not fall in the above categories or if it has not incurred before 4 weeks after the liquidator has notified you of the bankruptcy, you must report the claim with the bankruptcy estate.

 

If your claim is covered by the Danish Guarantee Fund for non-life insurance undertakings, you will be fully compensated. If your claim is to be covered by the bankruptcy estate, you cannot be sure to be fully compensated, but only partially compensated in the form of dividends from the bankruptcy estate.
5. I have payed premium for a full year, will I get some of my premium payment back? If your insurance policy is covered by the Danish Guarantee Fund for non-life insurance undertakings, cf. question 4, you will get a premium refund for the remainder of your insurance period, subject, however, to a deductible of 1000 DKK per policy. If your insurance policy is not covered by the Danish Guarantee Fund for non-life insurance under-takings, you can vindicate your claim for a premium refund to the bankruptcy estate.
6. I have reported a claim to Qudos Insurance before the company went bankrupt. What should I do now? You do not have to do anymore. Your claim will either be handled by the Danish Guarantee Fund for non-life insurance undertakings or the bankruptcy estate, cf. question 4 above.
7. How do I know if I am insured by Qudos Insurance A/S? The name of your insurance company is found in the terms of your insurance policy.
8. I am a policyholder in Qudos Insurance A/S, what should I do now?  The curator of the bankruptcy estate will contact you to guide and inform you on how to act if you want to report or vindicate a claim. If you have any questions to the curator, you can find information at www.qudosinsurance.dk. If you have any questions for the Danish Guarantee Fund for non-life insurance undertakings, you can find information at http://www.skadesgarantifonden.dk/Sider/Forside.aspx