Balva policyholders left to call Riga number

Former Balva policyholders will need to call the Latvian insurer in Riga if they need to notify a claim following the decision by UK-based Clear Claims Solutions that it would no longer handle claims on the company's behalf.

Legal Risk partner Frank Maher said this would add to the existing problem for firms with Balva policies that nobody had been appointed in the UK to receive premiums for run-off covers.

The unrated Latvian insurer started winding-up proceedings on 18 June 2013 after its regulator, the Financial and Capital Market Commission (FCMC), withdrew all operating licences and ordered the appointment of a liquidator.

It had been banned from underwriting any new business in the UK two months earlier, on 15 June.

The 1,300 UK firms with Balva professional indemnity policies had been informed the day before by the SRA in a letter reassuring them that they "need not be concerned" as this stage and that Balva was still solvent.

Clear Claims Solutions is understood to be a claims-handling division of Bar Professions set up to deal with claims under Balva policies.

The company was incorporated in January 2012 and shares offices with Bar Professions, and a director, Wayne Redgrave.

The SRA said its current understanding was that the liquidator is preparing a report for submission to the FCMC and that Balva remains solvent.

The SRA has said firms with claims should contact Balva directly using the following contact details:

Address: Balva, E.Birznieka Upiša iela 12, LV-1050, Riga, Latvia

Tel: (+371) 67506955

Facimile: (+371) 67506956

Email: balva@balva.lv