Pearse Doherty (Donegal South West, Sinn Fein) | Oireachtas source

We are all aware of the terrible news that Setanta Insurance has closed down, leaving 75,000 customers on this island high and dry – policyholders who had in good faith renewed with Setanta, many in recent months, and others who took out their policies prior to that.

The situation exposes the weakness in our regulatory system, because this company was not regulated in Ireland. It availed of EU rules that allowed it to be regulated in another EU jurisdiction while operating solely in this jurisdiction. I urge the Minister to address two concerns. The first is the most pressing one that affects the 75,000 policyholders. Many of them have contacted me. It is clear that a large section of the client base for the insurance company was self-employed people, in particular small businesses with vans, such as those in the construction industry or other businesses requiring vans. They seek clarity on the legal position, whether they are legally covered, what the situation is with the money they paid out a couple of weeks ago to renew their cover, why the State does not protect them, and whether they have any comeback.

I was contacted by one person from County Monaghan who was informed by an insurance broker that he or she needed to continue to pay the premium for the rest of the year despite the fact that the person is now not insured, the reason being that the broker paid Setanta Insurance in full up front. Questions arise in that regard also. How do we ensure this does not happen in future at an EU level?

I urge the Minister to address a couple of issues. What role will be played by the insurance compensation fund? Does the Government plan to take any offsetting measures, particularly given that many small and medium enterprises are being hard hit?

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