THE NUMBER of claims being submitted against now defunct motor insurer Setanta Insurance is continuing to rise and numbers stand at at least 2,000 claims with a total value of €35 million.
Ireland’s largest van insurance provider Insuremyvan.ie is calling on those insured with the company not to pay the expected shortfall on their claims, after reports from the Dáil suggested that policy holders with outstanding claims would be left to foot 35% of the claim themselves, with 30% refunded at a later date following the liquidation of Setanta.
Experts at the company argue that because drivers are forced by law to buy motor insurance from a regulated entity return they can expect in return to be indemnified from financial loss in the event of an accident.
Jonathan Hehir, Managing Director of www.insuremyvan.ie said: “The blame for this whole catastrophe may lie with multiple parties – none of which however are the policy-holders. They should not have to pay any part of these claims – that responsibility should fall to either the Minister for Finance, as he signed the EU legislator that allowed Setanta to operate here but not be regulated in Ireland, or the Maltese Regulator who must take some responsibility for this mess.”
Setanta Insurance folded in April of this year having previously announced that it would not be renewing or taking on any new business in January. When it collapsed, it left approximately 75,000 drivers scrambling for cover – over 5,600 of which were in Wexford.
The company, which had an office in Dublin, was established in May 2007 with the backing of individual investors, a number of whom were from Co. Wexford.
Mr. Hehir continued: “Most of these policy holders have already had to pay their premium on the double when the firm collapsed last year and according to the Minister are now expected to pay up to thousands of euro to other drivers and those injured in car accidents.”
He added that considering the fact that the government required people to buy car insurance from companies regulated either by the Irish Central Bank or regulated under EU legislation approved by the Minister for Finance.
“It would seem wholly unreasonable for the Minister to now decide that individuals, mostly self-employed van drivers, should have to pay part of claims”.
According to the Joint Oireachtas Finance Committee about 2,000 claims with a total value of €35 million are on the books of the Setanta Insurance liquidator. This figure is still rising as many policyholders have yet to submit claims. The selling off the assets of Setanta Insurance will cover just 30% of the claims lodged. The Insurance Compensation Fund will pay 65% of any claim, but that is limited to €825,000.
Expert are also questioning the fact that because incorporated entities will not have access to the ICF it remains to be seen how their claims will be dealt with.
