John Halligan (Waterford, Independent)
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84. To ask the Minister for Finance further to Parliamentary Question No. 155 of 6 May 2014, if he will provide an update in relation to the Setanta Insurance issue; if his attention has been drawn to the fact that there are numerous persons in County Waterford and indeed across the country who have been left in a terrible position (details supplied); and if he will make a statement on the matter. [37603/14]

Michael Noonan (Limerick City, Fine Gael)
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I am aware of the difficulties that the liquidation of Setanta Insurance Company Limited has caused for Setanta policyholders and those claiming compensation under Setanta insurance policies. My Department and the Central Bank will in due course be reviewing the overall circumstances relating to Setanta and will report to me on what lessons can be learned and how the framework can be strengthened.

With regard to the position of Setanta claimants, 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 finalised. Setanta is a Maltese incorporated company and, therefore, the Setanta liquidation is being carried out under Maltese law. The Setanta Liquidator is currently examining a range of factors in order to estimate the cost of claims and the extent to which claims can be met in the Setanta liquidation.  The Liquidator has advised that settlements can only be paid out after all of the company's liabilities are quantified, including claims.

The Insurance Compensation Fund (ICF) provides for payments to meet the liabilities of insolvent insurers in certain 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. The Accountant of the Courts of Justice is currently engaging with both the Setanta Liquidator and his legal advisors to put in place an appropriate mechanism to commence making applications to the High Court in accordance with the Insurance Act 1964. I understand that at the moment the Accountant is not in a position to put a timeline on when the first applications will be made. Procedures for processing claims and the timing of payments, including the question of advance payments from the ICF, is a matter for the President of the High Court. I have asked that this information on procedures is made available publicly as soon as possible. While this process is still ongoing, the Setanta Liquidator has advised that policyholders and brokers should send correspondence in relation to individual claims or other claims matters as soon as is possible to Setanta Insurance Company Limited (in liquidation) at:

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