Up to 40,000 people were tonight warned they could be without insurance cover after it emerged a Scottish company had been selling policies but failing to get them underwritten.
The warning came after Tribune Risk and Insurance Services was placed into provisional liquidation at the request of City watchdog the Financial Services Authority, with the loss of 93 jobs.
The group was an insurance agent selling mainly household insurance policies that were then underwritten by a third party.
However, the firm had failed to get underwriting for around 40,000 policies and had no reserves in place to meet any claims.
It was also not authorised to underwrite policies itself. The FSA warned people who had taken out household or buildings insurance with the group, which is based in Eskbank, Lothian, that they were unlikely to have any cover.
It advised people to take out alternative policies immediately, although it added that people holding Tribune Diamond policies were insured.
PricewaterhouseCoopers has been appointed as provisional liquidator and has set up a helpline for policyholders with outstanding claims.
PA