Dáil Éireann Debate, Tuesday - 19 January 2016
160. Deputy Sean Fleming asked the Minister for Finance the status of the payment of claims by Setanta Insurance; the level of payments that are expected to be made; the approximate timeframe for this matter to be dealt with; and if he will make a statement on the matter. [2098/16]
Amharc ar fhreagraThe 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 4 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 took place last week (on 12, 13 and 14 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. Thus, 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 30 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 outcome of the MIBI appeal.
I expect to be in a better position to inform the House after the legal proceedings are concluded and the implications of the outcome of those proceedings have been assessed.
