Written answers

Tuesday, 17 January 2017

Department of Finance

Insurance Industry

Photo of Éamon Ó CuívÉamon Ó Cuív (Galway West, Fianna Fail)
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216. To ask the Minister for Finance the progress made to date to ensure payment to all third party claimants that have outstanding claims against a company (details supplied); the steps being taken by the government to ensure these claimants get paid; and if he will make a statement on the matter. [1036/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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Setanta was placed into liquidation by the Malta Financial Services Authority on 30 April 2014. Setanta is a Maltese incorporated company and therefore, the Setanta liquidation is being carried out under Maltese law.  As of 31 December 2016, the number of open claims is 1,664. The Department of Finance continue to liaise with the liquidator.

Progress in the liquidation has been delayed due to court proceedings in the case of Law Society of Ireland v the Motor Insurers' Bureau of Ireland (MIBI).  The current position is that we are awaiting the outcome of MIBI's appeal to the High Court ruling, which was heard before the Supreme Court in October 2016. 

A small number of additional claims are not affected by the court proceedings and are being processed by the Office of the Accountant of the Courts of Justice. In this regard, the Insurance Compensation Fund (ICF) has recently been able to make 65% payments totalling €608,085 on 1stparty claims made by Setanta policyholders for comprehensive insurance claims. These payments are possible as they are 1stparty claims which come within the ICF remit, rather than 3rdparty claims delayed by the Supreme Court proceedings. The position in relation to 3rdparty motor insurance claims is that they are unlikely to be processed until after the outcome of the Supreme Court appeal.

The Liquidator for Setanta has informed me that:

- Claims provision required stands at between €87.7 million and €95.2 million

- Setanta policies were cancelled in May 2014. The 2 years allowable under the statute of limitation to lodge claims has expired so the claims figures will not increase further

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

- The Liquidator continues to be of the view that he will not be in a position to meet more than 30% of claims

I expect to be able to provide a more accurate update after the legal proceedings are concluded.

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