Michael Healy-Rae (Kerry South, Independent)
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175. To ask the Minister for Finance the position regarding payment from the Motor Insurance Bureau of Ireland in respect of a person (details supplied) in County Kerry; and if he will make a statement on the matter. [33439/14]

Michael Noonan (Limerick City, Fine Gael)
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The Motor Insurance Bureau of Ireland (MIBI) is a non-profit-making organisation registered in Ireland. All insurance companies underwriting motor insurance in this county must, by law, be members of MIBI and contribute to the funding of claims in proportion to their market share. The principal role of MIBI is to compensate innocent victims of accidents caused by uninsured and unidentified vehicles. This is regulated under the terms of an Agreement between the MIBI and the Minister for Transport, Tourism and Sport.

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.

All Setanta claims, including those which were settled but not paid out by Setanta, now fall to be processed as part of the Setanta liquidation. 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 extend of cover to meet these claims 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. Under Section 3.6 of the Insurance Act 1964 (as amended) claims by bodies' corporate or unincorporated bodies are not covered by the ICF except where there is a liability to or by an individual. In addition, all ICF payments are subject to a limit of 65% of the amount due or €825,000, whichever is the lesser. Management and administration of the ICF is under the control of the President of the High Court acting through the Office of the Accountant of the Courts of Justice and it is a matter for the Office of the Accountant of the Courts of Justice 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 reaching certainty in relation to the status of claimants as soon as possible.