Setanta Insurance Company Limited is a Maltese incorporated company. Setanta was formally placed into liquidation by the Maltese Financial Services Authority on 30th April 2014 when a liquidator was appointed under the provisions of the Maltese Companies Acts 1995. The liquidation is proceeding according to Maltese law.
The liquidation of an insurance company is a legally complex and time consuming process. The Liquidator has advised that settlements and refunds of premiums can only be paid out by the Liquidator after all of the Company's liabilities are quantified. Since it could take some time for a particular case to be finalised and, under the Statute of Limitations, claimants are given two years following an accident to make an initial claim, it may take some years before the liquidation process is completed.
As at the end of May 2015, the total number of open Setanta claims was 1,710. The Liquidator had advised that he estimates that the total claims provision which will be required by Setanta to pay claims is between €87.7 million and €95.2 million. This figure includes provision for claims not yet reported as well as a provision for deterioration in the position of currently open claims. The Liquidator has also informed my Department that based on these claims estimates, he does not expect to be in a position to meet more than 30% of the amounts due to Setanta creditors.
The respective roles of the Insurance Compensation Fund and the Motor Insurers' Bureau of Ireland in the compensation of former Setanta policyholders is currently before the High Court. The matter will be heard by Justice Hedigan on 13 July 2015.
