Carriage Insurance Company

Oral Answers to Questions — Board of Trade – in the House of Commons at 12:00 am on 22nd November 1967.

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Photo of Mr Arnold Shaw Mr Arnold Shaw , Ilford South 12:00 am, 22nd November 1967

asked the President of the Board of Trade whether he will make a statement on the current position of the Carriage Insurance Company.

Photo of Mr George Darling Mr George Darling , Sheffield, Hillsborough

In pursuance of its powers under Section 68 of the Companies Act, 1967, the Board of Trade directed the company with effect from 1st November to restrict its motor insurance business, that is to say, to cease entering into or varying contracts. The Board, being satisfied that the grounds for the direction no longer applied, withdrew it on 15th November.

Photo of Mr Arnold Shaw Mr Arnold Shaw , Ilford South

I congratulate the Department on the swift action taken in connection with this company. Would my right hon. Friend answer these questions? First, why was the Companies Registration Office unable to show on the file on 21st November the names of the new directors? Secondly, is he satisfied that there are adequate reinsurance facilities? Thirdly, has any further capital gone into the company, considering the weakness of the balance sheet?

Photo of Mr George Darling Mr George Darling , Sheffield, Hillsborough

We have gone into the point about reinsurance very carefully, and we are satisfied that the re-insurance arrangements are now adequate. The reason why the new directors' names have not appeared in the Companies Register is that, because of the new Companies Act, the Registrar is temporarily behind with the filing of new registrations. The capital has been increased by a further £48,000, which brings it up to £100,000. We think that that is adequate for the insurance which the company has effected.