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DBS run-off deal excludes retired members

DBS is reinstating run-off cover but only for current members, leaving retired members vulnerable to claims.

Run-off cover was withdrawn four months ago when the network renewed its PI policy through Misys&#39 regular broker Windsor, rather than the established DBS broker PYV.

The rejig was put down to aligning the five Misys networks ahead of the merger which, as announced last week, will take place in the New Year.

Although the five networks now all use the same broker, only DBS members will receive run-off cover.

On leaving the network, current members will not be covered for any business written during the four month lapse period.

They also face the uncertainty that a future lapse in the policy will annul their run-off cover, as is the case for the current generation of retired members who believed they would have run-off cover for the rest of their lives.

Misys says the lapse in cover was due to long negotiations with Windsor.

Misys IFA Services spokesman Martin Finch says: “If the policy is not seamless, retired members will be without cover. We can&#39t guarantee we will be able to get cover going forwards but that is the plan.”

Eden Park Associates principle Lawrence Gold says: “My view is that run-off cover should never have ended. It was a disgrace. I think DBS had to restore it. It may stop a mass walk-out. It does make me feel vulnerable knowing it is not guaranteed but there is not a lot you can do about that.”

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