THE IRISH Brokers Association has said that it is time for the government to issue a statement in relation to the matter of a Compensation Fund for drivers affected by the fall of Setanta Insurance. The call comes on the back of news that customers have not had their No Claims Bonuses issued by the company.
In Wexford, 5,625 drivers were left scrambling for cover following the collapse of the Maltese-regulated company in April. Wexford had the fifth highest proportion of drivers using the company.
The IBA has spoken out, slamming what it referred to as the overly lax European Regulatory System which allowed insurance companies to select the “softest set of rules”.
Ciaran Phelan, CEO of the IBA said that Setanta policyholders would all have received a letter by now telling them to seek alternative cover but he added that some of these policyholders would have paid for a full year and would be out of pocket.
“What is more, thousands of policyholders throughout the country also have claims outstanding with the now defunct insurer and their position is still unclear.
“The IBA firmly believes that the Irish government now needs to play their part in ensuring that compensation is available to those consumers impacted by the sudden liquidation of Setanta Insurance. In an era of heightened regulation, Irish consumers need to know that they are protected regardless of where that entity is regulated.”
The group believes that the government should make a statement and address the issue of providing for the return of unexpired premium payments as well as providing clarity around impending claims.
They also call for a radical overhaul of the industry which, at present, allows for companies primarily owned by Irish people and operating mostly in Ireland to be regulated in another country.
[Full story in this week’s Echo]