Dáil Éireann Debate, Thursday - 1 June 2017
89. Deputy Michael McGrath asked the Minister for Finance the position regarding the impact of the collapse of a company (details supplied); if those with outstanding claims are facing losses; the role of the insurance compensation fund; the role of an organisation (details supplied); the estimated number and value of outstanding claims; the estimated shortfall; and if he will make a statement on the matter. [26504/17]
View answerEnterprise 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 information (as of May 2017):
- 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 is unable to estimate at this time the timing or amount of any distribution he may be able to make to insurance creditors.
Of relevance is the recent decision of the Supreme Court in Law Society v MIBI. On 25 May 2017, the Court overturned the decisions of the High Court and Court of Appeal finding that the Insurance Compensation Fund is liable for third party claims. The decision to deem the Insurance Compensation Fund 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.
It is likely that in respect of third party claimants a proportion of the balance, of 35%, of a claim will be met from the proceeds of the distribution of assets on completion of the liquidation process.
