Setanta customers must be included in new legislation providing 100% compensation – Doherty
Sinn Féin Finance spokesperson Pearse Doherty TD has said the draft Heads of Bill to the Insurance (Amendment) Bill 2017 must be amended so that people affected by the Setanta collapse are included under new provisions guaranteeing 100% third party compensation in most cases. Currently, the Setanta claimants stand to get only 65% of their claim plus a percentage determined by the liquidator based on the result of the liquidation.
Deputy Doherty said:
“I welcome the Heads of Bill changes that will, in most cases, ensure that 100% of the values of claims are paid out for future Setanta like situations. I see no reason why the legislation cannot also apply to the Setanta process.
“I drafted legislation to allow Setanta customers avail of the full 100% through the Insurance Compensation Fund; however, this was unfortunately ruled out of order by the Ceann Comhairle. The draft Heads implement a system where the current 65% to be paid out by the ICF will be supplemented up to 100% by the Motor Insurance Bureau Ireland (MIBI).
“This provision must be implemented as soon as possible and applied to the on-going Setanta case. It would be grossly unfair for future cases identical to Setanta to be treated differently. There are 1,578 claims open according to the Minister for Finance; excluding those people from the new protections is indefensible.”