asked the Secretary of State for Trade and Industry if he is aware that insurance companies who go into liquidation do not provide cover to motorists who at the time are unaware of the failure of such companies to meet their liabilities, leaving such motorists in contravention of the Road Traffic Acts; and what action he intends to take.

Yes. It is the practice of the Department of the Environment to issue a Press notice immediately after a motor insurance company goes into liquidation warning former policyholders of the need to take out new insurance in order to comply with the Road Traffic Acts.