More than $2 million in premiums has been paid by up to 1100 people to one of the companies involved in the Bosnian insurance affair, according to Australian Securities and Investments Commission (ASIC) investigators. The amount that was to be covered by the policies is about $240 million.

Since reporting last week that it was investigating the actions of four Australian companies which had allegedly been acting as agents for Bosnian-based unauthorised foreign insurer Grand Osiguranje AD Zvornik (Grand), the regulator has taken further court action against the companies.

The Federal Court appointed Michael Scales from Ernst & Young as provisional liquidator of AMCO Insurance Management Group, AMCO Group, ACC AMCO Consortium Company and United Investment Funds. It is thought he will contact customers with further information soon, as ASIC assumes the validity of policies issued may be void.

ASIC is concerned that Grand has not authorised any of the AMCO companies or their representatives to act as foreign insurance agents on its behalf, and that Grand may not be legally obligated to honour the policies.

ASIC has advised anyone in Australia with insurance with Grand, “obtained through an insurance broker or any of the AMCO companies”, to immediately seek advice on their insurance or contact Insurance Enquires & Complaints on 1300 780 808.