Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I again raise the issue of the collapse of Setanta Insurance, which occurred in April 2014, more than four and a half years ago. Unfortunately, there are still many outstanding claims. Legitimate claims have been made and agreed but the amounts have not yet been settled because of the collapse of the company, the fact it went into liquidation and the fact that, for a long period, there was a cap of 65% on what could be paid by the insurance compensation fund. It has taken a lot of work, involving many parties, to try to secure progress on this issue. In January of this year, the Minister, Deputy Donohoe, gave a commitment that 100% of the third-party claims would be met, that is, the full cost of the claims, not the 65%. The necessary legislation to give effect to this, the Insurance (Amendment) Bill 2018, was completed before the summer recess and signed into law in July.

We have a situation where, as I understand it, there are still more than 1,500 outstanding claims which have not been fully met. In some cases, there is not yet an agreed settlement figure, which is why they have not been paid.

In other cases, 65% of the cost of the claim has been met by the Insurance Compensation Fund, but the claimant is still awaiting payment of the remaining 35%. There are further cases in which the full 100% continues to be owed, even though the claim amount has been agreed between the relevant parties. There will be a shortfall at the end of this process which ultimately will be met from the additional levy set out in the legislation and the new motor insurance compensation fund that is being in place.

I emphasise the human toll in this saga. I have got to know many of the people caught up in the collapse of Setanta Insurance. It has to be borne in mind that some of the claims which remain outstanding relate to accidents that occurred many years before the collapse of the company in 2014. In some cases, they occurred in 2009 and 2010. We are approaching 2019 and they are still waiting for their money. They are not scam or fraudulent claims; rather, they are legitimate claims made by people who have incurred an injury and worse. In one case, tragically, there were fatalities.

This issue must be prioritised. We need the next tranche of payments to be made without further delay. In that regard, I understand an application must be made to the High Court for approval of the next tranche of payments to be issued to those directly affected. It has been a nightmare for those caught up in the collapse of Setanta Insurance. They are people who, in the case of policyholders, took out a legitimate insurance policy in the State with a company regulated principally in Malta but which was regulated here for conduct of business purposes. In some cases, lives have been put on hold for many years. I hope there is light at the end of the tunnel and that the outstanding claims, in respect of which a settlement has been agreed, can be fully paid without further delay.

What people want to know as a result of my raising of the issue today is the date on which the process will be brought to a conclusion. We have had many promises and commitments from the Government. The Fianna Fáil Party is maintaining the pressure to get the issue over the line to bring an end to this nightmare for the people affected.

Patrick O'Donovan (Limerick County, Fine Gael)
Link to this: Individually | In context | 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.

Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

I thank the Minister of State for the reply. I omitted to mention in my opening remarks the policyholders whose insurance policy with Setanta was the subject of a claim by a third party and who had been left in limbo. Many of them have received legal letters in the past few years informing them that they could be held personally liable and have judgments taken out against them for any shortfall in the amounts paid to the claimants. It is important to indicate that many of those caught up in the collapse of Setanta Insurance also had this issue hanging over their heads.

It is welcome that a date has been set for the next court hearing - Monday, 19 November 2018 - that it will involve the approval of 1,500 separate payments related to the collapse of Setanta Insurance, with a value of approximately €21 million and that the payments will be issued to the affected claimants in late November or early December. I sincerely hope there will be no further delay in the process and that the people concerned will get their money either at the end of this month or early next month but definitely before Christmas this year.

This is not the end of the matter as there will be further tranches that will need to be approved and paid. There are still outstanding claims, for which there are no settlement amounts. I encourage all those involved to try to reach a settlement in order that the mechanisms provided for in the Insurance (Amendment) Act 2018 can kick in and the full amount can be paid. The good news, as per the Minister of State's reply, is that a date has been set and there is light at the end of the tunnel. However, Fianna Fáil will maintain the pressure. I thank everybody who has been working to bring about a resolution of this really difficult issue for those affected. I hope there will be no further undue delay in having the payments issued to those affected.

Patrick O'Donovan (Limerick County, Fine Gael)
Link to this: Individually | In context | Oireachtas source

I acknowledge the Deputy's remarks and I am sure the Minister for Finance, Deputy Donohoe, would concur with much of what he said. The Government is satisfied that the new arrangements for the Insurance Compensation Fund, with the procedures for accessing funds, mean that from now on other claimants will be able to receive payments more efficiently and regularly.

I acknowledge the Deputy's welcome for the setting of the court date. He is right that there is now light at the end of the tunnel. It involves an input from a number of bodies, including the Central Bank and the State Claims Agency. The House will appreciate that, with the new arrangements, there is a considerable amount of detailed work attached to the process and that it is important to get it right. Nonetheless, the Minister is determined that all Setanta claimant payments will be issued as soon as is practicable. He welcomes the news from the State Claims Agency that the next court hearing will be later this month, with a view to the next tranche of claims being paid by late November or early December.