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CIVIL LITIGATION CLIENTS

Insurance cover

Please contact your solicitor to understand how you may be impacted

FAQs

Civil litigation loan insurance cover

    Who does this impact?

    This issue impacts some Novitas loans used to cover civil litigation claims. If you have received a letter from us about your loan where you have taken out an AmTrust Legal Expenses Insurance Policy, your legal funding may be affected.

    If you do not have an AmTrust insurance policy this does not affect you.

    If you are unsure if you have an AmTrust insurance policy, please contact your solicitor who will be able to advise you.

    If you have a Novitas loan for a family, probate, or clinical negligence matter, you are not impacted in any way.

    What is the insurance policy for?

    At Novitas Loans, we operate civil litigation loans on a ‘no-win, no-fee’ basis. We therefore require customers to have an insurance policy in place to ensure that the loan is repaid if their claim is unsuccessful.

    Some of our customers’ insurance policies were arranged by their solicitor with independent insurer AmTrust Europe Limited (“AmTrust”). If you are not sure who your insurer is, please contact your solicitor. 

    How do I know if I have an AmTrust insurance policy?

    You will have received details of your AmTrust policy with the initial documents you received from your solicitor at the start of your claim. 

    If you cannot find these documents, please contact your solicitor to request further copies.

    If you have all your documents and are still not sure if you have an insurance policy with AmTrust then please speak to your solicitor to confirm.

    What has happened?

    AmTrust has told us that they are carrying out an audit into the insurance policies they have provided for certain civil litigation claims.

    While AmTrust’s audit is being carried out, the status of its insurance policies is currently uncertain and as a result some legal costs (disbursements) funded under our loan agreement may not be covered under those policies. 

    This is a ‘reservation of rights’ by AmTrust. It means that in line with the conditions of our loan agreement, which require an insurance policy covering the loan at all times, we cannot approve further drawdowns from affected loans to pay for legal costs (disbursements) until this issue is resolved.

    How am I impacted?

    Until further notice, we will not approve drawdowns from loans insured by AmTrust to pay for legal costs associated with civil litigation claims. This is because it is a condition of our loan agreement that an insurance policy is covering the loan at all times, and while AmTrust is conducting its audit the position regarding AmTrust insurance policies is uncertain. 

    If you are concerned this issue is affecting your civil litigation claim, please contact your solicitor directly who will be able to advise you about possible alternative funding arrangements.

    Do I need to do anything?

    We recommend you contact your solicitor to understand:

    • If this will impact your claim

    Your claim may not be able to proceed if a payment funded by Novitas is required to progress matters or to meet legal deadlines, unless you arrange alternative funding. 

    If your claim has already concluded and is due to be paid by AmTrust, you should check the status of your insurance cover by contacting your solicitor. 
     

    • Whether you should seek alternate funding to progress

    Funding alternatives may be available. These can include using your own funds, requesting that your solicitor funds further legal costs (disbursements), or seeking a different insurance provider or funder.

    How long will this take to resolve?

    We do not know when AmTrust will conclude its audit.  We are in contact with AmTrust on this matter but the duration or the outcome of its audit is a matter for AmTrust. 

    Do I need still to repay the loan?

    At Novitas Loans, we operate civil litigation loans on a no-win, no-fee basis. 

    All loans are designed to be repaid in one of two ways:

    • from the claim settlement if a claim is successful OR
    • through the Legal Expenses Insurance Policy if a claim is not successful (this is why having a valid insurance policy in place at all times is a condition of our loan).
       

    What do I need to do if my case has concluded/failed/closed, or is no longer proceeding?

    If your claim has already concluded and is due to be paid by AmTrust, you should check the status of your insurance cover by contacting your solicitor.

    Why do I still have a loan with Novitas Loans if my case has concluded/failed/closed, or is no longer proceeding?

    If you have received this letter, then your Novitas Loan has not yet been repaid through the Legal Expenses Insurance Policy.  If your claim has already concluded and is due to be paid by AmTrust, you should check the status of your insurance cover by contacting your solicitor.

    How do I know if the letter I have received is genuinely from Novitas Loans?

    The loan reference number can be found at the top of your letter. Please check this against the reference on your annual statement from Novitas Loans. 

    What should I do if I don’t fully understand the information provided?

    If you would like further help with this matter, please speak to your solicitor directly, who will be able to help you. Alternatively, you can call us on 0333 321 6064, or write to us at Novitas Loans, Wimbledon Bridge House, 1 Hartfield road, London, SW19 3RU.