Business Irish

Friday 23 March 2018

Setanta claims still not paid three years after collapse

Michael McGrath
Michael McGrath
Charlie Weston

Charlie Weston

PEOPLE with a claim that involves bust insurer Setanta are still waiting for compensation three years after the collapse of the company.

Some 1,600 claims are now outstanding at a total cost of €95m, according to Dáil replies received by Fianna Fáil finance spokesman Michael McGrath.

The people waiting for a settlement were not directly insured with the Malta-regulated Setanta. Instead, they have a third-party claim where the driver responsible was insured with Setanta.

The claims have not been paid pending the outcome of a Supreme Court hearing last year. People who had claims and had comprehensive cover from Setanta - so-called first-party claims - are not affected by the court action. But others with third-party claims have been caught.

In October the Supreme Court heard an appeal by the Motor Insurers' Bureau of Ireland against a decision that it is liable for claims brought against the collapsed insurer.

The Bureau argued that the Insurance Compensation Fund should pick up the tab.

It is not clear when the Supreme Court will deliver its judgment on the dispute.

The liquidator of Setanta has stated that he will only be able to pay out 30pc of the value of the claims.

Setanta mainly insured van drivers, many of whom are self-employed.

Mr McGrath said: "The 1,649 outstanding claims are expected to cost between €87.7m and €95.2m and the liquidator has again stated that he will not be in a position to meet more than 30pc of claims."

He argued that even at this stage, the Government should bring the parties together in a bid to agree on meeting the cost of the outstanding claims pending the outcome of the Supreme Court decision.

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