Patrick O'Donovan (Limerick County, Fine Gael) | Oireachtas source

I am taking this matter on behalf of the Minister for Finance, Deputy Donohoe, who sends his apologies for not being present. As the Deputy will be aware, he is before the Select Committee on Finance, Public Expenditure and Reform, and Taoiseach. I acknowledge the Deputy's interest in this matter and that this is not the first time he has raised it.

As alluded to by the Deputy, Setanta Insurance was placed into liquidation by the Malta Financial Services Authority on 30 April 2014. As it was a Maltese incorporated company, the liquidation is being carried out under Maltese law. The Minister is conscious of the effect of the delays in the payment of compensation to Setanta Insurance claimants. The Deputy will be aware that the insurance (Amendment) Act 2018 was signed into law in July this year. The Act, inter alia, provides for the payment of 100% of the compensation due to Setanta third party personal injury motor insurance claimants, including the additional 35% to those who have settled their claims and already received compensation of 65%. The Act also provides for revised arrangements for the ongoing administration of the Insurance Compensation Fund, including, as referenced by the Deputy, the relevant applications to the President of the High Court. The revised arrangements have been put in place. The administration and governance of the fund has been transferred from the accountant of the High Court to the Central Bank of Ireland. The State Claims Agency has taken on the responsibility for making the application for the payment of claims from the Insurance Compensation Fund to the High Court. Once the High Court grants an order to release money from the fund, it is the State Claims Agency that will receive the funds directly from the Central Bank. The agency will then process and issue payments to claimants in co-operation with the liquidator.

The Minister has been informed by the State Claims Agency that a High Court date has been agreed for Monday, 19 November. The purpose of the court appearance is to obtain approval for payments from the fund in respect of the fourth tranche of payments to Setanta claimants. Payments can then be issued to qualifying Setanta claimants by the agency within ten working days of obtaining the funds from the Central Bank on foot of the High Court order. Therefore, the Minister is optimistic that the next tranche of payments can be made to claimants in late November or early December. While he cannot comment on individual cases, the agency has advised that the next tranche will comprise of newly settled claims requiring 100% payment; all those cases where 65% was previously paid and where the balance of 35% is due; and a number of third party legal cost payments. In total, it is expected that the next tranche of claims will comprise in the region of 1,500 separate payments, with a value of approximately €21 million.

While it was hoped an earlier court date could have been agreed, it should be noted that this is the first time the State Claims Agency will carry out the assessment and verification process. Therefore, it is taking extra care to ensure the entire process will work as intended. As the House will appreciate, with 1,500 separate payments, there is a considerable amount of detailed work attached to the process and it is important to get it right. Once the details are worked through for the first application, the process should work more efficiently for subsequent applications. It should be noted that the process of settling claims is still ongoing and, in some cases, subject to court procedures. As the fifth Setanta tranche application to the High Court will be subject to the three-month rule as set out in the Insurance (Amendment) Act 2018, it will not take place until late February at the earliest. The liquidator of Setanta Insurance estimates that the process of settling the vast majority of the outstanding claims should be completed by the end of 2019.

I hope the reply has been of some benefit to the Deputy. If there are specific issues that he wants to raise, I will be happy to relay them to the Minister.

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