Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

car crash image via Shutterstock
in limbo

Setanta Insurance wind up leaves policyholders 'stranded without cover'

The Central Bank said today that Setanta is not in a position to confirm that claims will be met in full.

Updated 3.18pm

SHAREHOLDERS AT SETANTA Insurance Limited have decided to wind up the company, saying it is unable to confirm whether customer claims will be met.

The Central Bank confirmed the move today but pointed out that the Malteste firm’s financial position is not supervised by the bank as it is subject to prudential supervision by the Maltese Financial Services Authority.

The authority notified the bank yesterday of the shareholders’ decision and the process will take place in Malta.

On its website, the vehicle insurance company said it has reached a conclusion that a “solvent run-off is no longer possible”.

The Central Bank will require Setanta to write to all policyholders to advise them of the situation and its implications for them.

“Setanta is not in a position to confirm that claims will be met in full since any and all claims will be subject to the relevant liquidation process,” the bank said in a statement today. “Policyholders should therefore make arrangements for alternative cover without delay.”

Commenting on the news today, Managing Director of insuremyvan.ie Jonathan Hehir said thousands of small business owners appear now to be “stranded without cover”.

“A couple of months ago when Setanta first ran into difficulty it assured policyholders that claims will be paid – however now it seems that those with outstanding claims will be left in a very precarious predicament,” he added.

Customers have already been expressing their concern with one business saying they have had to pull their van in because they don’t know if they are covered:

PastedImage-28951

PastedImage-42748

First published 13.44

Read: Homeowners opposed to flood levy to help others get insurance>

Read: Men reaping benefits of insurance gender directive – women not so much>

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
45
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.