Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

My reply to Deputy's question is much the same as my reply to the previous question.

The liquidation of an insurance company is a legally complex and time-consuming process. Setanta is a Maltese incorporated company and, therefore, the Setanta liquidation is being carried out under Maltese law.

Progress in the liquidation of Setanta has been awaiting the outcome of the High Court case of the Law Society of Ireland v. the Motor Insurers' Bureau of Ireland. As this case is still sub judice, there are certain matters upon which I am not in a position to comment at this time. I will, however, respond to the Deputy's question as best I can within these constraints.

The Setanta liquidator informed me that he has made the following progress: the number of open claims was 1,696 at the end of August; the claims reserves position stands at between €87.7 million and €95.2 million; the liquidator will accept new claims up until May 2016, two years after the insurance policies issued by Setanta were cancelled - final settlements can only be paid out after all of the company's liabilities are quantified; and on foot of work already done with the Office of the Accountant of the Courts of Justice and the State Claims Agency, the liquidator was in a position to move quickly to start the process of paying claims in the event that the ICF had been deemed liable.

It has proven difficult to settle claims in advance of the High Court judgment as there is a lack of clarity as to whether the MIBI or the ICF is to be held liable. There is a cap on payments from the ICF of 65% per claim or €825,000, whichever is less. This cap does not apply in the case of payments by the MIBI.

The liquidator continues to await a final outcome to the High Court case. On 4 September 2015, the High Court held that the MIBI is liable in respect of claims against the policyholders of Setanta. The matter has been further listed for 13 October 2015, when the matter of costs in these proceedings will be dealt with. I understand that after that point the MIBI will have a further 28 days to appeal the case.

I am not currently in a position to confirm the level of payments expected to be made or the timeframe for the matter to be dealt with. I expect, however, to be in a better position to advise the House once the High Court proceedings have finally concluded.

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