John Halligan (Waterford, Independent)
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144. To ask the Minister for Finance in view of this Deputy's understanding that he is on record of Dáil Éireann stating that claims made against Setanta Insurance would be met by the Motor Insurers Bureau Ireland, if he will provide an explanation as to how it can be justified that genuine claimants are still being denied their court-awarded compensation and are currently caught in limbo; his views that this situation should no longer be permitted; if his opinion on this matter has changed; his Department's plans to ensure a situation of this nature is not permitted to happen; and if he will make a statement on the matter. [27485/15]

Michael Noonan (Limerick City, Fine Gael)
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Setanta Insurance Company Limited is a Maltese incorporated company. Setanta was formally placed into liquidation by the Maltese Financial Services Authority on 30th April 2014 when a liquidator was appointed under the provisions of the Maltese Companies Acts 1995. The liquidation is proceeding according to Maltese law. 

The liquidation of an insurance company is a legally complex and time consuming process. The Liquidator has advised that settlements and refunds of premiums can only be paid out by the Liquidator after all of the Company's liabilities are quantified. Since it could some time for a particular case to be finalised and, under the Statute of Limitations, claimants are given two years following an accident to make an initial claim, it may take some years before the liquidation process is completed. 

In the immediate aftermath of the announcement of the liquidation of Setanta, my officials were informed by Insurance Ireland that the Motor Insurers' Bureau of Ireland 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, the MIBI obtained a legal opinion and, having considered it, they advised the Minister for Transport, Tourism and Sport in late July 2014 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 obtained legal advice on this matter from the Attorney General. Having considered the Attorney General's advices, I proceeded on the basis that the MIBI would not be playing a role in compensating claimants due awards under Setanta policies and that all Setanta claims, including those which were settled but not paid out by Setanta, would fall to be processed as part of the Setanta liquidation. The Accountant of the Courts of Justice and the Setanta Liquidator have done much work to agree procedures to allow for advance payments of up to 65% in respect of claims to be paid from the Insurance Compensation Fund.  

This updated position was provided by me in response to Parliamentary Questions regarding Setanta Insurance and the MIBI on 17th September 2015.

The respective roles of the Insurance Compensation Fund and the Motor Insurers' Bureau of Ireland in the compensation of former Setanta policyholders is currently before the High Court. The matter will be heard by Mr Justice Hedigan on 13 July 2015. 

My Department and the Central Bank will in due course be reviewing the circumstances relating to Setanta and will be reporting to me on what lessons can be learnt and how the framework can be strengthened. However, since Setanta is a Maltese authorised company subject to prudential supervision by the Malta Financial Services Authority, any follow-up investigation on the regulatory issues surrounding the firm's failure falls under the responsibility of the MFSA as home regulator.