Supreme Court ruling must be the end of Setanta saga for victims and lead to drop in premiums – Doherty
Sinn Féin Finance spokesperson Pearse Doherty has said the majority Supreme Court ruling that the Insurance Compensation Fund (ICF) is liable for outstanding Setanta claims must mark the end of the saga for Setanta customers and compensation due must be now paid from the Insurance Compensation Fund without delay. He added that the removal of the uncertainty caused by the case should, logically, mean lower premiums for drivers.
Deputy Doherty said:
“I hope this ruling marks the end of this saga. The taxpayer was always going to end up paying directly through a levy or through their premiums. The ordinary man and woman in the street will be footing the bill.
“The Liquidator needs to write to all those waiting compensation as soon as possible informing them when they will receive compensation.
“Currently, the ICF can only cover 65% of a claim or €825,000, whichever is the lower. Those restrictions should be removed for Setanta customers who have had to wait so long.
“I fear this ruling means the 2% Insurance Levy will be extended and become for all intents and purposes a permanent levy. This levy was brought in light of the Quinn insurance collapse; the fact that it will be extended reflects very poorly on the regulation of the insurance industry.
“I note the Insurance Industry has been using the uncertainty of the Setanta case as an excuse to justify premium increases and as an explanation as to why new entrants are not entering the market. I will be expecting to see a drop in premiums on the basis that that uncertainty should now be ended with the insurers’ case winning out.
“The nightmare must end for those waiting for compensation that is only what they are due. The government must now move swiftly to legislate to clear up any outstanding ambiguities.”