Written answers

Tuesday, 23 May 2017

Department of Finance

Company Liquidations

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

194. To ask the Minister for Finance the status of the liquidation of a company (details supplied); the number of Irish policyholders affected; the amount of compensation or refunds owed to customers here; if the liquidator has updated the Central Bank on the situation; if customers here are likely to be paid in full or partially; and if he will make a statement on the matter. [24453/17]

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

Enterprise Insurance Company plc (Enterprise) is a Gibraltar incorporated company and, therefore, the Enterprise liquidation is being carried out under the laws of Gibraltar.  The situation around the Enterprise liquidation is an evolving one.  The position as it currently stands is as set out below.

A Provisional Liquidator was appointed to Enterprise on 25 July 2016. A report of the Provisional Liquidator was considered by the Supreme Court of Gibraltar on 26 October 2016, after which the Supreme Court agreed with the appointment of a liquidator to Enterprise. Upon appointment, the Liquidator disclaimed all Enterprise motor policies resulting in all motor policies written by Enterprise ceasing to be effective from midnight 26 October 2016.  

The Gibraltar Financial Services Commission has provided the Department of Finance officials with the following up-to-date information:

- The Liquidator has appointed Wrightway Underwriting Ltd to manage claims arising under insurance policies written by Enterprise in Ireland.  Claims adjudicated upon and validated will be accepted by the Liquidator as insurance creditors in the Enterprise estate.

- The latest information indicates that there are 230 live claims from Irish policyholders arising from the motor insurance business with an estimated claims reserve value of €8.4 million.

- The Liquidator and his agents have been in contact with the Supervision Division of the Central Bank of Ireland.

- The Liquidator is unable to estimate at this time the timing or amount of any distribution he may be able to make to insurance creditors. 

It is understood that the Liquidator is unlikely to be able to meet the claims in full.  The question, then arises as to how any shortfall will be met and whether it will be met in full. In this regard, a clearer picture will emerge when the Setanta judgment is announced on 25 May. Should the High Court ruling be upheld then the MIBI will be liable to compensate third parties up to a limit of €1,220,000 per claim for property, regardless of the number of claimants, while there will be no cap on payments for personal injury claims.? However, if the Court rules that the Insurance Compensation Fund (ICF) is liable then the payments are subject to a limit of 65% of the amount due or €825,000, whichever is the lesser.

Comments

No comments

Log in or join to post a public comment.