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Motor insurance

1,666 Setanta Insurance claimants still waiting on payouts

It is nearly three years since the insurer collapsed.

A TOTAL OF 1,666 claimants of Setanta Insurance are still waiting to be paid – nearly three years after the collapse of the firm.

Figures released to the Fianna Fáil finance spokesperson, Michael McGrath, through a parliamentary question, reveal that as of 30 November 2016, 1,666 claims were outstanding.

McGrath’s question says that the claims could cost €95 million, however sources say that figure isn’t representative of what is owed to policyholders. It is understood around €12 million is owed to policyholders, with the remainder owed on third-party claims.

The Maltese-based firm was wound up in April 2014, saying it was “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 Motor Insurance Bureau of Ireland (Mibi) had been asked by the government to step into the breach after the company went belly-up, but said it had been given legal advice against this.

A Supreme Court case which will decide who pays the money is due to be ruled upon this year.

McGrath said that the response is “depressingly similar to a reply” he received last July.

“Almost three years on from the collapse of the Maltese incorporated company, close to 1,700 claims remain unsettled and the Liquidator is of the view that he will not be in a position to meet more than 30% of claims. Meanwhile, the Supreme Court decision on who is liable for the eventual bill is still awaited.

“The government needs to urgently develop and implement a coherent policy on motor insurance before more claimants are left in the lurch, while others can simply no longer afford to remain on the road due to spiralling motor insurance costs.”

Read: This is how drivers will be protected if a motor insurance company collapses

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