Dáil Éireann Debate, Tuesday - 28 February 2017
223. Deputy Michael McGrath asked the Minister for Finance if he will provide an update on the impact of the collapse of a company (details supplied); if those caught up in outstanding claims are facing any losses; the role of the insurance compensation fund; the role of the Motor Insurance Bureau of Ireland; the current estimate of the number and value of outstanding claims and the shortfall; and if he will make a statement on the matter. [10003/17]
Amharc ar fhreagraEnterprise 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.
According to the Enterprise website, the Liquidator is currently confirming arrangements for the management of claims as well as establishing the process by which claims may be submitted. Directions for the submission of claims will be detailed on the website of for Enterprise (www.eigplc.com/) as soon as they are available. Persons who have a query or a claim should contact the Liquidator and his team on telephone number 00 350 200 50150 or info@eigplc.com.
My officials are liaising with the liquidator to find out the number and value of outstanding claims. At this stage, this information has not been made available.
In relation to refunds for outstanding cover on policies, Enterprise's agent in Ireland, Wrightway Underwriting Ltd, has advised the Central Bank that it has informed brokers to make an ex-gratia payment to affected policyholders. This payment will be equal to the value of the premium from 26 October 2016 until the end of the current policy contract . Policyholders are advised by the Central Bank to discuss any such refunds with their broker.
In relation to the role of the Insurance Compensation Fund (ICF) the Deputy should note that it provides for payments to meet the liabilities of insolvent insurers in certain cases where it is unlikely that claims can be met otherwise than from the ICF. Management and administration of the ICF is under the control of the President of the High Court acting through the Office of the Accountant of the Courts of Justice. Under the Insurance Act 1964, in a liquidation all ICF payments are subject to a limit of 65% of the amount due or €825,000, whichever is the lesser. In addition, claims by bodies corporate or incorporated bodies are not covered by the ICF, except where there is a liability to or by an individual.
In relation to the role of the Motor Insurance Bureau of Ireland (MIBI), the High Court issued a decision in the Law Society of Ireland v the MIBI case to the effect that the MIBI's liability under the 2009 Agreement extended to situations of insurer insolvency (subject to each individual claim being deemed eligible). This decision was then appealed by the MIBI, however in March 2016, the Court of Appeal dismissed the appeal. Subsequently, in April 2016, the Supreme Court made an order allowing an appeal to that Court. This appeal was heard by the Supreme Court in October 2016 and judgement was reserved. No date has been specified for delivery of the judgment. If the High Court ruling is upheld then the MIBI will be liable to compensate third parties up to a limit of €1,220,000 per claim for property, regardless of the number of claimants, while there will be no cap on payments for personal injury claims.
