Auto Service World
News   August 21, 2002   by Auto Service World

Troubled Markham General Unable to Pay Bodyshop Claims, Says Report


Bodyshops are reporting that they have not been paid by Markham General Insurance, according to the Collision Industry Action Group.
According to a report from the organization, Markham General’s cheques are bouncing, and they do not have the money to pay all claim losses. This is the latest installment in the saga for the insurance company which saw it come under the control of a Deloitte and Touche as liquidators at the end of July.
At that time, the Financial Services Commission of Ontario (FSCO) issued notice that the regulator would take possession of the assets of the troubled insurer, Markham General Insurance Co.
FSCO says its action against Markham had followed close monitoring of the company’s financial affairs and after having been supplied by financial records from the board of directors. The superintendent took this action to protect policyholders because Markham General Insurance Co., could no longer meet its obligations.
On July 24, 2002, the Ontario Superior Court of Justice on the application of the superintendent of financial services at the Financial Services Commission of Ontario, ordered Markham General Insurance Company to be wound-up under the Winding-up and Restructuring Act.


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