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

83. To ask the Minister for Finance the details of the liquidation of a company (details supplied); the mechanism by which persons will receive 100% of their claims; the timeframe involved in reaching a conclusion of this case; and if he will make a statement on the matter. [12357/18]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

Setanta was placed into liquidation by the Malta Financial Services Authority on 30 April 2014. As it was a Maltese incorporated company, the liquidation is being carried out under Maltese law.

The Deputy will be aware that under the Insurance Act 1964, as amended, monies may be paid out of the Insurance Compensation Fund (ICF), with the approval of the High Court, in relation to an insolvent insurer, to meet claims up to a limit of 65% or €825,000 of the claim, whichever is the lesser.

The Deputy will also be aware of my decision in principle that the State will ensure that Setanta third party claimants are compensated in full, which was announced on 30 January.  The Department of Finance following consultation with the Office of the Attorney General, has clarified that there are no state-aid or other legal issues with this decision, and can now proceed with the detailed arrangements to implement it. 

It is proposed to include an appropriate provision in the Insurance (Amendment) Bill, which is currently being drafted by my officials and the Office of Parliamentary Counsel. The Bill is expected to be published in the coming weeks. Once this is done the likely timeline for payment of the additional 35% will become clearer, including to those who have settled their claims and have already received compensation of 65% of their claim subject to the limit outlined above.  This additional payment will be made in accordance with the revised administrative arrangements provided for in the Bill.

The liquidator for Setanta Insurance has informed me that as of 28 February 2018, there are 1,577 active claims, of these 573 claimants have been paid compensation from the ICF subject to the 65%/€825,000 limit.

I have also been informed that the Accountant of the Courts of Justice intends to make the next application to the High Court for approval for payment out of the ICF on the 16 April 2018 in relation to some 275 claims to the value of c €5.8m. Subject to the approval of the High Court, these payments will be paid within 15 working days from the date of the order and will be subject to the 65%/€825,000 limit. 

It is important to note that only claims which have been settled can be included in applications to the High Court for payment from the ICF. The process of settling claims is still ongoing and it is hoped that by the State taking steps to ensure that third party claimants are compensated in full, this will encourage the settlement of all outstanding claims as quickly as possible.