Kieran O'Donnell (Fine Gael) | Oireachtas source

I welcome the Minister of State, Deputy D'Arcy, who has responsibility for financial services and insurance. I wish to raise the issue of Setanta Insurance and Enterprise Insurance. It is now nearly four years since Setanta went into liquidation. It was regulated in Malta but, under the European passport, it was able to operate in Ireland. Many of my constituents in Limerick were motor insurance policyholders with Setanta. A large number of them would have paid motor premiums for a full year and, in effect, were shortchanged by Setanta.Many of them still await refunds. On Tuesday last, the Minister of State and the Minister for Finance, Deputy Donohoe, gave hope to Setanta Insurance and Enterprise Insurance policyholders, particularly third-party claimants, to the effect that they might receive recompense more quickly than would be expected in a liquidation process. Under the Supreme Court ruling, the insurance compensation fund, ICF, will be responsible for those payments rather than the Motor Insurers Bureau of Ireland, MIBI. As Members are aware, the latter pays 100% of the value of claims but the insurance compensation fund only pays 65%. Up to 22% of the outstanding 35% may be recouped during the liquidation process but that may take several years. The Government has stated that, in principle, the State will account for the outstanding 35% and will then pursue the possible collection of 22% from the liquidation.

When is it expected that discussions with the liquidator and other bodies and stakeholders will take place and when will the Government be in a position to pay third-party claimants? How many third-party claimants are involved? What is the position in terms of compensation for those who paid their insurance for a full year but were only insured for a portion thereof, thus losing the remainder of their premiums? How much does the Minister of State anticipate the compensation relating to Enterprise Insurance will cost the State? Will the payment be a cost to the State? From where will the net difference between the 35% and 22%, which is 13%, come? What contingency plans does the Government have to ensure that people will get paid, that third-party claims will be repaid quickly and that individuals may receive refunds in respect of their premiums in situations similar to this - whereby insurance companies are regulated outside the jurisdiction but selling policies here and, like Setanta, they fail and go into liquidation - in the future?