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Setanta customers face further delay and uncertainty over clashing legal advice- Doherty

31 March, 2015 - by Pearse Doherty TD

Sinn Féin Finance Spokesperson Pearse Doherty TD has said customers at Setanta Insurance are now facing further delays before any compensation is paid because of a clashing legal advice over whether the industry funded Motor Insurance Bureau of Ireland (MIBI) can pay out on some claims. The collapsed insurance firm was Irish owned but regulated in Malta before it went into liquidation in April of last year. 75,000 Irish customers were left high and dry when the company collapsed.

Deputy Doherty said:

“I am disappointed to learn that differing legal advice received by the Department of Finance from the Attorney General and by the Accountant to the High Court from Matheson means customers awaiting compensation will now face a delay.”

“Originally, the Minister for Finance said he was operating on the basis that the MIBI could contribute to some claims. He then reversed this position after he received legal advice from the Attorney General.  Now, I have learned that advice received by the Accountant to the High Court whose job it is to work with the liquidator to make sure the Irish customers get compensation in the liquidation process conflicts with the AG’s advice.”

“What this means is for customers at Setanta is that a delay until at least July now seems likely. Prior to this latest round of uncertainty it appeared customers might be in line for some compensation in the near future.”

“The Setanta mess has been handled very badly by the Minister and other bodies in the State. This latest mess can only frustrate former customers at Setanta.” 

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