Setanta Insurance –end of the line?
It has been reported that 21 millon euros are to be paid to motorists caught up in the collapse of Setanta Insurance.
The Maltese based company collapsed in 2014 as they were unable to pay for claims made against their policyholders. This created chaos for claimants and Setanta policyholders alike. A series of cases to determine who should be responsible for paying for the outstanding claims followed; should it be the Compensation Fund or the MIBI?
Ultimately the Supreme Court decided that the Compensation Fund was responsible. A consequence of this, however, meant that claimants would only receive 65% of the value of their claims. It also raised the spectre of the 35% balance being potentially recoverable from the innocent Setanta policyholders. Eventually the Irish government stepped in to announce a scheme which would ensure that all claimants would receive 100% of their damages, with the Irish taxpayer making up the shortfall.
Until now no details have been provided outlining the mechanics of the proposed scheme. Minister Paschal Donohoe, however, has said that final payments should be made in early November.
What this means is that those who have already received 65% of their compensation entitlement will receive the remaining 35% shortly. Any claims due to be paid out in the next tranche of payments from the Compensation Fund will be paid out in full and on-going cases, when resolved, will also be paid out in full.
It is a welcome conclusion to what has been a long running issue which has caused concern and distress to all of those unfortunate enough to be caught up in it.