Thursday, 22 November 2018

Questions (42)

Michael McGrath

Question:

42. Deputy Michael McGrath asked the Minister for Finance the status of the liquidation of a company (details supplied); when the Insurance (Amendment) Act 2018 will be fully commenced; when the next payment will take place; when all claimants involved in the company will receive compensation in full; and if he will make a statement on the matter. [48567/18]

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Written answers (Question to Finance)

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 final part of the Act, Part 4, will come into operation on 1 December this year, under the Insurance (Amendment) Act 2018 (Commencement) (Part 4) Order 2018, which I signed on 13 September.

The State Claims Agency have, on 19 November, obtained High Court approval for payments from the Fund in respect of the fourth tranche of payments to Setanta claimants. It is hoped that the Agency will issue payments within ten working days of receiving funds from the Fund on foot of the High Court order. It is anticipated this will be completed by late November/early December.

This tranche of claims is comprised of approximately 1,500 separate payments with a value of approximately €21 million, and will comprise of (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.

It should be noted that the process of settling claims is still ongoing and is subject in some cases to court procedures. The next application to the High Court will be subject to a three-month rule so will be late February 2019 at the earliest. The liquidator of Setanta estimates that the process of settling the vast majority of these outstanding claims should be completed by end-2019.