Independent court defeat could cost industry £60m

The insurance industry may have to pay a levy of £60m after the Financial Services Compensation Scheme (FSCS) was successfully charged under the Policyholders Protection Act 1975 with illegally refusing to pay pre-liquidation legal costs to GeoLogistics, a former policyholder with failed insurer Independent.

The FSCS has petitioned the House of Lords to grant an appeal against the judgment, warning of dangerous implications for the insurance industry and a damaging effect on policyholders in