Alpha Insurance A/S declared bankrupt

The insurance company Alpha Insurance A/S has been declared bankrupt. Policyholders in the company must write a new policy with another insurance company as fast as possible if they want to maintain their insurance cover. The Danish Guarantee Fund for non-life insurance undertakings will cover some claims incurred prior to the date of bankruptcy and up to four weeks after the curator has notified policyholders of the bankruptcy.

On 8 May 2018, the liquidators of the insurance company Alpha Insurance A/S under frivillig likvidation (“under frivillig likvidation” means in voluntary liquidation) filed a petition for bankruptcy.

Policyholders with a compulsory insurance policy, or insurance policies equal to compulsory insurance, must write a new insurance policy with an-other insurance company as fast as possible to obtain their compulsory insurance cover.

The bankruptcy means that policyholders no longer can report their claims to Alpha Insurance A/S. Policyholders must report their claims to the Danish Guarantee Fund for non-life insurance undertakings (hereinafter the Guarantee Fund), provided that the claims are covered by the Guarantee Fund. Otherwise, policyholders must report their claims to the bankruptcy estate of Alpha Insurance A/S.

The Guarantee Fund covers claims incurred prior to the date of bankruptcy and up to four weeks after the curator has notified policyholders 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 8 November 2018. Claims reported to Alpha Insurance A/S before 8 May 2018 are regarded as reported to the Guarantee Fund or the bankruptcy estate of Alpha Insurance A/S. The Guarantee Fund will publish information to policyholders on a continuous basis at http://www.skadesgarantifonden.dk/Sider/Forside.aspx and http://www.skadesgarantifonden.dk/english/Sider/QAs.aspx

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 Alpha Insurance A/S’s website: www.alphagroup.dk

Claims reported to Alpha Insurance A/S before 8 May 2018 are regarded as reported to the bankruptcy estate of Alpha Insurance A/S.

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

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

Q&A

Question

Answer

Who is Alpha Insurance A/S and what has happened? Alpha Insurance A/S is a Danish insurance company, which operates in Denmark and is authorized to write business in all EU/EEA countries on a freedom to pro-vide services basis. On 4 March 2018, Alpha Insur-ance A/S announced that the company was placed in-to liquidation. On 8 May 2018, the liquidators filed a petition for bankruptcy.
Is my policy still in force?   You are encouraged to write new insurance policies as fast as possible. Especially if your insurance policies are compulsory.
I have a claim, what should I do?  If your claim has already been reported to Alpha 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. You should report your claim as fast as possible and no later than 8 November 2018, if your claim is covered by the Danish Guarantee Fund for non-life insurance undertakings.
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 prior to the date of bankruptcy and up to four weeks after the curator has notified policyholders of the bankruptcy.

If your claim does not fall in the above categories or if it has not incurred no later than four weeks after you have been notified by the curator of the bankruptcy, you must report your claim to 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.

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 undertakings, you can vindicate your claim for a premium refund to the bankruptcy estate. 
I have reported a claim to Alpha 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.
How do I know if I am insured by Alpha Insurance A/S?  The name of your insurance company is found in the terms of your insurance policy. 
I am a policyholder in Alpha 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.alphagroup.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 and http://www.skadesgarantifonden.dk/english/Sider/QAs.aspx