The Great Landlord Building Insurance Scam
Policy EJ166904 Zurich/Chase Longman Associates.
This is the only instance when a bordereau policy has been secured by a leaseholder.
A bordereau is the policy issued by the insurance company and as such is the only valid insurance document. The correct legal position with regards to bordereaux is laid out in SELCHA's letter to Margaret Cole, the Director of the Enforcement Division of the FSA.
The practice of landlords or their insurance intermediaries increasing bordereau premiums has been correctly defined as illegal by:
Michael Foster MP
Clive Briault, Managing Director, Retail Markets FSA
Trading Standards.
Chase Longman Associates
Chase Longman Associates (Jersey) Limited is a classical off-shore slush fund operation.
It is registered in Jersey at a PO Box address. It has a share issue of £1,000. It has no named directors. All its directors are limited companies registered in Jersey which have share issues of £12.00 and which are registered at the same PO box Address.
Policy EJ166904 Zurich/Chase Longman Associates
This policy was issued at a rate of £0.55p per £1,000.00p sum insured for all buildings insured. There were 152 buildings insured in total.
The total premium paid to Zurich inclusive of insurance premium tax was £29.371.63p.
Zurich supplied Chase Longman with a Zurich Logo and a bromide and sing these facilities, Chase Longman issued documentation which allowed the landlord to demand a premium total of £156, 948.64p from leaseholders.
The policy paid claims for that year of £50, 378.51p. There is no record of this money ever having been passed on to leaseholders.
After commissions and Insurance Premium Tax, Zurich received a net premium of £35,306.05p for policy EJ660904 which meant that it suffered a net loss of £15,072.46p before administration costs.
The amazing thing is it then renewed policy EJ166904 for the following year at the same loss making insurance rate of £0.55p per £1,000.00p sum insured. Could the shareholders know this is going on?