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Insurance Compensation Fund

Dáil Éireann Debate, Tuesday - 22 October 2019

Tuesday, 22 October 2019

Ceisteanna (150)

Michael McGrath

Ceist:

150. Deputy Michael McGrath asked the Minister for Finance the amount paid out in compensation from the insurance compensation fund in relation to the liquidation of a company (details supplied) to date; the number of persons partially compensated at this stage; the number of persons fully compensated at this stage; the number of persons still awaiting compensation; the number of persons whose claims have not yet been settled in court or otherwise; the anticipated remaining amount required for compensation from the fund; the anticipated amount that will be retrieved by the fund from the liquidation process; and if he will make a statement on the matter. [43293/19]

Amharc ar fhreagra

Freagraí scríofa

Setanta Insurance ("Setanta") 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.

I am very conscious of the effect of the delays in the payment of compensation to Setanta third party claimants, and this is one of the reasons why the Government brought forward the Insurance (Amendment) Act last year to ensure that such  claimants are compensated in full, and to put in place revised arrangements for the ongoing management and administration of the Insurance Compensation Fund, including for applications to the High Court. However as previously outlined neither I nor the Department of Finance have any role in the process including the making of applications to the High Court or the making of payments.

I have been informed by the State Claims Agency that the amount paid by the Insurance Compensation Fund (‘ICF’) to date in respect of Setanta Insurance is €43.7 million.

Since the enactment of the Insurance Amendment Act 2018 all third party personal injury claimants submitted to the ICF have now received 100% compensation. Claimants settled prior to the Act who initially received 65% were subsequently resubmitted to the ICF in November 2018 and the shortfall of 35% was paid at that time.

796 claimants have been fully compensated as of October 2019. However, as with any litigation, negotiations to agree associated legal costs are still ongoing in some instances. As of October 2019 a further tranche of 89 claimants have been agreed by the State Claims Agency who are making an application to the ICF for these claimants to be paid early next month. There are currently 284 claimants that have not yet settled.

The total potential call on the ICF is likely to be circa €104 million in respect of the liquidation of Setanta Insurance as per actuarial estimates. As previously stated the amount paid by the ICF to date in respect of Setanta Insurance is €43.7 million and the current application to the ICF referenced for October 2019 amounts to €6.8 million. Therefore there is potentially a further €53.5 million which may be required from the ICF. It is estimated that the amount retrieved by the Fund from the liquidation process to be not greater than 22% of the anticipated amount.

Finally any individual (or their solicitor) who has queries about their payment should contact the liquidator via phone at +353 (0)818 255 255 or via email at iesetanta@deloitte.ie.

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