4 May 2017
By David O’Sullivan
Three years on from the collapse of Setanta Insurance, over 1,600 claimants are still left hanging in limbo, according to Fianna Fáil Spokesperson on Finance Michael McGrath.
Figures released to Deputy Michael McGrath, through a parliamentary question, reveal that, as at 31 March 2017, 1,649 claims, at a potential cost of €95.2m, remained open pending the outcome of a Supreme Court appeal.
“Three years has now passed since Setanta Insurance was placed into liquidation by the Malta Financial Services Authority on 30 April 2014. The reply I received from Minister Noonan in the Dáil on the Setanta collapse has confirmed no progress since the Supreme Court hearing in October 2016. There is no indication of a date for the judgment from the Court.
“The 1,649 outstanding claims are expected to cost between €87.7m and €95.2m and the liquidator has again stated that he will not be in a position to meet more than 30% of claims. Even at this late stage, the government should bring the relevant parties together in an effort to reach agreement on meeting the cost of the outstanding claims pending the outcome of the Supreme Court decision.
“Last July, the Minister for Finance laid out a new policy in the area of motor insurance compensation when an insurer is put into liquidation, but it remains unclear when this will be implemented given the opposition to it from the insurance industry. Last year, we had the collapse of Gibraltar-based Enterprise Insurance Company and 14,000 Irish motorists were advised to take out a policy with another company.
“The Government needs to urgently develop and implement a coherent policy on motor insurance before more claimants are left in the lurch, while others can simply no longer afford to remain on the road due to spiralling motor insurance costs,” concluded McGrath.