Handling of Setanta insurance collapse a fiasco as claimants left hanging in limbo – McGrath
Published on: 06 April 2015
The handling of the collapse of Setanta Insurance has turned into a complete fiasco with 1,748 claimants left hanging in limbo with no end in sight, according to Fianna Fáil Finance Spokesperson Michael McGrath TD.
Deputy McGrath stated, “Some time ago, I suggested that the Joint Oireachtas Finance Committee examine the issues arising from the collapse of Setanta Insurance. Last week, the committee heard from Department of Finance officials, the Accountant of the Courts of Justice (who administers the Insurance Compensation Fund (ICF)) and the liquidator of Setanta Insurance. During the course of the proceedings, some staggering facts emerged:
– Not one cent has been paid to date to any of the 1,748 Setanta claimants.
– The liquidator estimates that he will not be able to pay any more than 30% of the amounts due to claimants.
– The Accountant of the Courts of Justice has received legal advice which appears to contradict the advice of the Attorney General about the possible liability of the Motor Insurance Bureau of Ireland (MIBI) in dealing with Setanta claims.
– The Accountant of the Courts of Justice is now taking a case to the High Court to clarify the liability of the MIBI.
– The ICF, which can pay out up to 65% of an eligible claim, will not be making any payments to Setanta claimants until the Court case has been concluded.
– The liquidator states that he cannot make any payments to claimants until all 619 court cases involving Setanta claims have been concluded.
“The bottom line here is that anyone involved in an accident with a Setanta policyholder has been left hanging in limbo. 1,037 cases involving personal injuries remain outstanding, along with 711 cases involving damage to property. There is no clarity as to when payments will be made and how much of their claim will eventually be honoured. It is now a distinct possibility that claims will not be met in full. Meanwhile, former Setanta policyholders involved in accidents are facing the possibility of being held personally liable for claims against them.
“The handling of this issue has been a shambles from the beginning. One year on from the collapse of Setanta, there is no clarity on fundamental issues affecting Setanta claimants. The Minister for Finance should summon an emergency meeting of the key stakeholders involved in the liquidation of Setanta to thrash out the issues and put a resolution in place for the 1,748 claimants. The Minister also needs to instigate a review of the respective roles of the MIBI, ICF, the Central Bank and his own department in the event of another insurance company collapsing in the future.”