Michael McGrath (Cork South Central, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

102. To ask the Minister for Finance the status of Setanta Insurance policy holders with outstanding claims; and if he will make a statement on the matter. [3715/16]

Michael Noonan (Limerick City, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The liquidation of an insurance company is a legally complex process.  Setanta is a Maltese incorporated company and, therefore, the Setanta liquidation is being carried out under Maltese law. 

Progress in the liquidation of Setanta Insurance has been awaiting the outcome of legal proceedings in the case of the Law Society of Ireland versus the Motor Insurers' Bureau of Ireland (MIBI).  On 4^thSeptember 2015, the High Court held that the MIBI is liable in respect of claims against the policy holders of Setanta. This decision was appealed by the MIBI and the appeal was heard between the 12^th and 14^thof January 2016.  We are currently awaiting the outcome. 

As this case is sub judice, there are certain matters which I am not in a position to comment on at this time.  I am responding to the Deputy's question as best as I can within these constraints. 

The Liquidator for Setanta has informed me that:

- The number of open claims was 1,696 as at 30^thNovember 2015.

- The claims reserves position stands at between €87.7 million and €95.2 million.

- The Liquidator is continuing to accept new claims up until May 2016, two years after the insurance policies issued by Setanta were cancelled.

- Final settlements can only be paid out after all of the company's liabilities are quantified, including claims.

- The Liquidator reports that it is proving difficult to settle claims in advance of the outcome of the MIBI appeal.

I expect to be in a better position to inform the House further after the legal proceedings are concluded.