Setanta compensation is 'a complete fiasco'
The High Court will have to decide which of the State's two insurance compensation funds must compensate Setanta Insurance policyholders.
Motorists left out of pocket when Setanta collapsed 12 months ago have yet to receive any money from either the liquidator of the Dublin-based, Malta-licensed insurer, or from compensation funds set up to protect motorists, the Oireachtas Finance Committee was told yesterday.
The total bill could run to €95m and the question of when any money will be paid to policy holders is still up in the air, the Committee was told.
The handling of the case has turned into a "complete fiasco" Fianna Fail's Michael McGrath said. Maltese liquidator Paul Mercieca estimated that creditors will receive around 30 cents in the euro once the liquidation process is complete, but that process could take years.
Here, the Insurance Compensation Fund (ICF), can pay up to 65 cents in the euro to out- of-pocket policyholders but a controversy over whether it or the Motor Insurance Bureau of Ireland (MIBI) should meet the Setanta bill will be decided at the High Court, Accountant of the Courts Sean Quigley said.