Wednesday, April 01, 2015

Issues surrounding collapse of Setanta Insurance must be resolved

Fine Gael TD for Meath East and member of the Oireachtas Finance Committee, Regina Doherty, has today (Wednesday) called on the legal squabbling surrounding the collapsed Setanta Insurance to end in the interest of policy holders who have lost out. Deputy Doherty was speaking after the issue was discussed at the Oireachtas Finance Committee.

“Setanta claimants haven’t received a cent because of a legal wrangles, and that is not acceptable.

“The Insurance Compensation Fund, funded by a levy on insurance policies, should be the appropriate source of compensation. The fund pays 65% of the value of a claim. A further 35% should come from the liquidators once the liquidation process completes.

“Another potential source of compensation is the Motor Insurers’ Bureau of Ireland fund which is also funded by a levy. Its principal role is to compensate innocent victims of accidents caused by uninsured and unidentified vehicles. However, as the former customers of Setanta had insurance, they have been advised this source is not open to them. This is disputed by The ICF and is before the courts.

“The matter is further complicated by the fact that Setanta was registered in Malta and it’s liquidation law requires that no compensation be provided to anyone until all claims are settled, leading to further delays.

“Put simply, all of this means that the former Setanta policy holders loose out. They need action. The sensible solution is that they receive 65% of the values of their policies from the Insurance Compensation Fund, with the remaining 35% following once the liquidation process is complete.”

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