GOVERNMENT inspectors found company records in a "chaotic state" when they investigated a local insurance firm.

Investigators found that premiums had not been passed on to insurance companies, and that many insurers used were from out of the country and not even licensed to do business here. The firm, Charter Lloyd Ltd, has now been wound up.

The company traded from 43 Bury New Road, Prestwich, as well as premises in Oldham and Southport. The Official Receiver has been appointed liquidator.

The Department for Trade and Industry (DTI) said company records were in a "chaotic state" and, because premiums collected on behalf of insurers had not been paid over, it was impossible to find out which clients were covered.

Charter Lloyd was incorporated in October, 1995, and traded as an insurance broker placing commercial damage and liability insurance mostly through foreign firms not authorised to carry on insurance business in the UK.

The DTI said members of the public who had done business with Charter Lloyd should, where they knew the name and address or telephone number of their insurance company, contact them to find out if their insurance was effective.

If they were not able to assure themselves that the cover was in order they should make alternative arrangements with another company.

Members of the public who want to check whether an insurance company is authorised to conduct business in the UK can contact the Insurance Directorate of the DTI on 0171 215 0136.

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