Taxpayers May End Up Paying For Collapse Of Setanta Insurance

Taxpayers may end up footing the bill for third-party claims related to the collapse of Setanta Insurance, the Irish Times reported. The Maltese-registered insurer went into liquidation in April leaving 75,000 motor policyholders in Ireland with no cover. It had been selling mainly commercial motor insurance through brokers and was known as a low-cost operator. Initially Minister for Finance Michael Noonan signalled the industry-funded Motor Insurance Bureau of Ireland (MIBI) would cover all outstanding third-party claims emanating from the collapse. However, on foot of legal advice, the department has informed the Oireachtas Finance Committee that the MIBI would not now be playing a role in compensating claimants due awards under Setanta policies. “In all likelihood these claims must now be sent to the Insurance Compensation Fund(ICF), funded by the insurance levy, which itself must queue up and stake its claim under the liquidation process,” Sinn Féin finance spokesman Pearse Doherty said.