HM Treasury News Release

139/98                                             17 August 1998
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               BIG - INDEPENDENT DISCUSSION FORUM
                                

Motorists and householders are being warned about a report on the
Internet under the heading - BIG - Independent Discussion Forum.

Few details are provided but neither BIG or the European Insurance
Organisation which are referred to on the site is permitted to insure
UK third-party motor risks.

Motorists are reminded that third-party insurance must be taken out
with an insurer authorised to carry on motor business in the UK or
with a company with its head office in another European Economic Area
(EEA) member state which is permitted to provide such insurance in
the UK.

It is unclear how the insurance scheme is intended to operate but
potential policyholders should be aware that where insurance is
placed with an insurer not permitted to carry on insurance business
in the UK, policyholders will not be protected by the provisions of
the Policyholders Protection Act.

NOTES TO EDITORS

1.   BIG was wound up in the High Court on 8 July 1998 on a petition
from the Secretary of State for Trade and Industry in the public
interest. The Internet report claims that it is continuing to
trade and that it has moved its operation offshore.

2.   Section 143 of the Road Traffic Act 1988 lays down the legal
requirements for third-party motor insurance.

3.   The Policyholders Protection Act 1975 (as amended) protects
policyholders whose insurance companies have become unable to
meet their liabilities.

4.   If you have access to the Internet you can find this news
release and other Treasury information at
http://www.hm-treasury.gov.uk.


# = pounds sterling