Pearse Doherty (Donegal South West, Sinn Fein)
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60. To ask the Minister for Finance the implications for consumers and the Exchequer of the decision by the Motor Insurance Bureau of Ireland not to meet the claims of third party claimants at Setanta Insurance; and if he will make a statement on the matter. [36166/14]

Michael Noonan (Limerick City, Fine Gael)
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MIBI obtained a legal opinion and, having considered it, 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 ICF.  Under the Insurance Act 1964 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.  In view of the clarifications in relation to the MIBI position, 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 achieving more certainty in relation to the standing of claimants as soon as possible.

As the ICF is not pre-funded, the Insurance Act 1964 provides that the Minister for Finance may, on the recommendation of the Central Bank of Ireland, advance from time to time to the ICF such sum as he thinks proper to enable payments out of the ICF.  Any such advances are to be refunded to the Exchequer by the ICF in due course.  The Central Bank has not made any such recommendation arising from the Setanta liquidation and accordingly no funds have been advanced to the ICF  for that purpose.