Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

I welcome the Minister of State, Deputy Eoghan Murphy, and his officials.

I will start with the Setanta issue, about which the Minister of State was questioned by Deputy Pearse Doherty. The Minister of State has refused to say that the Government wants everybody to get 100% of outstanding claims. I wish to place on record some details from a solicitor's letter which has come into my possession. The letter was issued to a Setanta claimant following the judgment last week. The solicitor wrote that he had news concerning the claimant's case and that, unfortunately, that news was not good. He explains the judgment and says that the consequences would not be good for the claimant, that the ICF would only pay 65% of the compensation or award for the claimant's personal injury, loss or damage and 35% of the legal costs, court duties, medical, expert report and barrister's fees. The solicitor indicates that the balance of 35% of the claimant's compensation and legal costs will not be paid by the ICF. It is also indicated that there might be some small payment by the liquidators of Setanta Insurance in Malta but that, in the solicitor's view, this will not be significant. The solicitor said that it might be possible to pursue the driver-policyholder for the 35% shortfall but that there would be costs involved in doing so and that these would have to be paid by the claimant. His letter indicates that it might not be cost-efficient to take this course. The solicitor goes on to say that it is doubtful that all or most of the remaining 35% could be recovered and that there would be cost implications involved.

The solicitor proceeds to state that as there was uncertainty as to who was going to be responsible, his firm had to join the MIBI to the action and that, from the date of the letter, the latter had no responsibility and that its legal costs would have to be paid. He also states that the MIBI's costs would have to come out of the 65% and that there would be a shortfall in the legal costs and outlay occurred - 35% plus all the solicitor's work completed in joining the MIBI to the proceedings. He further states that there might be medical expenses and other items of expenditure which might have been incurred on the client's behalf and which would have to be paid and that, therefore, the net compensation the claimant would receive after the deductions outlined would be less than 65% but that it was too soon to say by how much. The solicitor finally states that the situation was a total mess caused by the insolvency of Setanta, that it would take time for all the issues to be resolved and that it was unclear when the ICF administration scheme would come into play and what would need to be done at that point.

People have been hung out to dry. That is the reality. There are over 1,600 claimants who still do not know where they stand and the Minister of State has refused to take the opportunity to give them any comfort to the effect that they will not be out of pocket. We have people who could be held personally liable in respect of any shortfall that arises from a claim. Will the Minister of State not sit down with the insurance industry and the liquidator in order to get a proper handle on this? Will he seek the support of and a commitment from the industry - he may find those involved to be more willing than he might imagine - in the context of ensuring that the shortfall will be met and that people's costs will be fully covered?