Setanta Insurance 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 the Insurance (Amendment) Act 2018 (Act 21 of 2018) was signed into law in July this year. The Act, inter alia, provides for the payment of 100% of the compensation due to Setanta third party personal injury motor insurance claimants including the additional 35% to those who have settled their claims and have already received compensation of 65% of their claim.
The Act also provides for revised arrangements for the on-going administration of the Insurance Compensation Fund, including for the relevant applications to the President of the High Court. These revised arrangements have now been put in place.
I signed the Insurance (Amendment) Act 2018 (Commencement) (Part 4) Order 2018, which enacts Part 4 of the Act, on 13 September. This section of the Act establishes the new Motor Insurers Insolvency Compensation Fund. This was the final part of the Act left to be enacted, and will come into force on 1 December 2018.
Currently, no date has yet been fixed for the presentation of next tranche of payments to the High Court. However, I am informed by the State Claims Agency that much of the preparatory work has been completed, and while it was originally hoped that a court date could be arranged for the end of October, at this stage it may slip into the first half of November.
The Agency has advised that the next tranche will comprise (a) newly settled claims requiring 100% payment, (b) all those cases where 65% was previously paid and where the balance of 35% is due and (c) a number of third party legal costs payments. In total, it is expected that next tranche of claims will comprise in the region of 1,500 separate payments with a value of approximately €21million.
Finally, it should be noted that the process of settling claims is still ongoing and is subject in some cases to court procedures. The liquidator of Setanta estimates that the process of settling the vast majority of outstanding claims should be completed by end-2019.