Dáil Éireann Debate, Thursday - 17 December 2015
112. Deputy Michael McGrath asked the Minister for Finance the status of the liquidation of Setanta Insurance; if those caught up in outstanding claims are facing any losses; the role of the Insurance Compensation Fund and the Motor Insurers Bureau of Ireland; the number and value of outstanding claims; the shortfall; and if he will make a statement on the matter. [45737/15]
View answerThe liquidation of an insurance company is a legally complex process. Setanta is a Maltese incorporated company and, therefore, the Setanta liquidation is being carried out under Maltese law.
Progress in the liquidation of Setanta Insurance has been awaiting the outcome of legal proceedings in the case of the Law Society of Ireland versus the Motor Insurers' Bureau of Ireland (MIBI). On 4th September 2015, the High Court held that the MIBI is liable in respect of claims against the policy holders of Setanta. This decision is currently being appealed by the MIBI and the appeal hearing is scheduled for 12th-13th January 2016. As this case is sub-judice, there are certain matters which I am not in a position to comment on at this time. I am responding to the Deputy's question as best as I can within these constraints.
The Liquidator for Setanta has informed me that:
- The number of open claims was 1,696 as at 30th November 2015.
- The claims reserves position stands at between €87.7 million and €95.2 million.
- The Liquidator is continuing to accept new claims up until May 2016, two years after the insurance policies issued by Setanta were cancelled.
- Final settlements can only be paid out after all of the company's liabilities are quantified, including claims.
- The Liquidator reports that it is proving difficult to settle claims in advance of the MIBI appeal.
I expect to be in a better position to inform the House after the legal proceedings are concluded.
