Britain’sserious fraud office has launched a full investigation into the collapse of Independent Insurance.
The London-based group went into provisional liquidation on Monday putting 2,000 jobs at risk after failing to raise £200 million sterlingto shore up its balance sheet.
The insurer had been hit by soaring claims for personal injury compensation.
PriceWaterhouseCoopers has been appointed provisional liquidator to sell its assets and use what remains to pay creditors.
Independent Insurance was worth around £1 billion last year but suffered serious problems in recent months. Last week Mr Michael Bright, who founded the company in 1986, left without a pay-off.
The liquidators will try to work out the financial position of Independent. They will also be working with policy-holders to develop a reorganisation plan.
A spokesman for PriceWaterhouseCoopers says a scheme will be devised which should provide for the part-payment of claims from creditors - including the group's 500,000 personal and 40,000 commercial policy-holders - if the company's liabilities exceeds its assets.
PA