Written answers

Thursday, 1 June 2017

Department of Finance

Insurance Compensation Fund

Photo of Michael McGrathMichael McGrath (Cork South Central, Fianna Fail)
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71. To ask the Minister for Finance if the Central Bank or other State entity will be represented in the liquidation process of a company (details supplied); and if he will make a statement on the matter. [26400/17]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The Supreme Court delivered its judgment on 25 May 2017 overturning the previous decisions of the High Court and the Court of Appeal, finding that the Motor Insurers’ Bureau of Ireland (MIBI) is liable in respect of third party motor insurance claims made against the policyholders of Setanta Insurance. Therefore, the Insurance Compensation Fund (ICF) has been deemed responsible for the payment of third party claims. 

Setanta Insurance was placed into liquidation by the Malta Financial Services Authority in April 2014 and this liquidation is being carried out under Maltese law.  The Central Bank of Ireland will not be represented in the liquidation process.

In relation to any other state entities, the decision to deem the ICF liable clarifies that the Office of the Accountant of the Courts of Justice will be responsible for organising, with the assistance of the State Claims Agency, the payment of 65% of the amount due from each outstanding third party claim, or €825,000, whichever is the lesser.

Department of Finance officials had discussions with Office of the Accountant of the Courts of Justice and the State Claims Agency and they indicated that they had broad plans in place to deal with this issue.  Our understanding is that both agencies are working with the Liquidator to plan out the process of validation and presentation of claims. Once the Liquidator has the claims ready for examination, the State Claims Agency will step in to commence the validation process. The State Claims Agency has assured the Department that it will act swiftly so that there will be no unnecessary delay caused by this validation process.


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