Drivers warned over unlicensed insurer

Chief City watchdog the Financial Services Authority has urged people to check their motor insurance cover.

Any person who has arranged motor insurance cover with Sussex Insurance Service should be aware that their cover may not be valid and they should take steps to reinsure their vehicle immediately

Department of Trade and Industry statement

Up to 18,000 people who bought car cover from Hove-based company Sussex Insurance Services may be driving without insurance.

An investigation by the Department of Trade and Industry (DTI) has revealed that the company, which purported to sell motor insurance, was not authorised to do so.

"Any person who has arranged motor insurance cover with Sussex Insurance Services should be aware that their cover may not be valid and they should take steps to reinsure their vehicle immediately," the DTI warned.

High Court

The DTI petitioned the High Court on Friday for Sussex Insurance to be put into provisional liquidation, following an investigation by the department's Companies Investigation Branch.

The court appointed the Official Receiver as provisional liquidator pending the hearing of the petition on 5 December 2001.

The DTI is advising people who have bought their motor insurance from the company to contact the Official Receiver at:

The Insolvency Service Public Interest Unit PO Box 203 21 Bloomsbury Street London WC1BN 3SS

People can ring the FSA's Consumer Helpline on 0845 606 1234 for guidance and to check the database of authorised insurers.