Denis Naughten (Roscommon-South Leitrim, Independent)
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174. To ask the Minister for Finance his views on the situation regarding Setanta Insurance and the MIBI; the steps he is taking in view of this issue; and if he will make a statement on the matter. [33391/14]

Denis Naughten (Roscommon-South Leitrim, Independent)
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214. To ask the Minister for Finance further to Parliamentary Question No. 58 of 29 May 2014, if he will provide an update on same in view of recent developments in relation to the MIBI; and if he will make a statement on the matter. [33390/14]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 174 and 214 together.

In the immediate aftermath of the announcement of the liquidation of Setanta, my officials were informed by Insurance Ireland that MIBI had indicated that they intended to accept all third party claims. My statements in the Dáil reflected this position which was accurate based on the information available at the time. However, MIBI obtained a legal opinion and, having considered it, they advised the Minister for Transport, Tourism and Sport in late July that the 2009 agreement with him does not require the MIBI to satisfy awards against drivers covered by a policy of insurance where the insurer is unable to pay all or part of an award because of insolvency.

Jointly with the Minister for Transport, Tourism and Sport, I have obtained legal advice on this matter from the Attorney General. Having considered the Attorney General's advices, I intend to proceed on the basis that MIBI will not be playing a role in compensating claimants due awards under Setanta policies.

With regard to the general position with the Setanta liquidation, you will appreciate that a liquidation of an insurance company is a legally complex and time consuming process. In general terms, under the Statute of Limitations, claimants are given two years following an accident to make an initial claim. However, it could take several years for a particular case to be settled. These are factors that the Setanta Liquidator is currently examining in order to estimate the cost of claims, and the extent to which claims can be met in the Setanta liquidation.

The Insurance Compensation Fund (ICF) provides for payments to meet the liabilities of insolvent insurers in cases where it is unlikely that claims can be met otherwise than from the Fund. Management and administration of the ICF is under the control of the President of the High Court acting through the Office of Accountant of the High Court. In view of the clarifications in relation to the MIBI position, it is a matter for the Office of the High Court Accountant to finalise arrangements for processing ICF claims.

My officials continue in discussions with the High Court and with the Setanta Liquidator with a view to achieving more certainty in relation to the standing of claimants as soon as possible.