Setanta Insurance Company Limited (In Liquidation)
On Thursday 25th May 2017, the Supreme Court overturned the decision of the High Court and the Court of Appeal and determined that it is the Insurance Compensation Fund (ICF), instead of the Motor Insurers Bureau of Ireland (“MIBI”), who is liable to make payments in respect of claims against persons who were insured with Setanta Insurance at the time of its entry into liquidation.
The ICF will now start the process of making payments of 65% of the amount due from outstanding third party claims, or €825,000, whichever is the lesser. The liquidator anticipates that a significant proportion of the balance of these claims will be met from the proceeds of the distribution of Setanta’s assets on completion of the liquidation process..
The Liquidator is keen to progress the payment of claims and is liaising with all relevant parties to agree the next steps to achieve this. As soon as the implications of the Supreme Court judgment have been considered an update will be published here.
Please note that the Supreme Court ruling and the above statement relate solely to insurance claims and their treatment. Return premiums due to former policyholders as a consequence of the need by the liquidator to cancel all policies still in force at the time of the liquidation are not affected and will be incorporated in the ultimate distribution of Setanta Insurance net assets at the conclusion of the liquidation process.
Meeting of the Creditors
In accordance with Article 296 of the Companies Act, Chapter 386 of the Laws of Malta of a meeting the creditors of the Company took place on Friday 17th June, 2016 at Office 4, Verdala Business Centre, Level 1, LM Complex, Brewery Street, Mriehel, Birkirkara BKR 3000 at 10.00 hrs local time.
Please click here for a summary of the minutes of the meeting.
The Claims Process For Setanta
To make a claim, it is a prerequisite that the claim is covered by an insurance policy, issued by Setanta, that was valid at the time the incident/accident giving rise to the claim occurred. Therefore, the incident/accident must have occurred prior to 26th May 2014, in respect of private vehicle policies and 29th May 2014 in respect of commercial vehicle policies, as it was on these dates that insurance policies issued by Setanta were cancelled by Setanta’s liquidator.
A claim can be based on:
A court order
An injuries board order to pay
A settlement agreement between the claimant and Setanta
How to make a claim if you have not previously notified Setanta
The first step is to notify Setanta’s liquidator of the claim. Setanta’s liquidator is tasked with the orderly liquidation of Setanta and is required to identify all liabilities of Setanta.
Contact details are as follows:
Setanta Insurance Company Ltd (In Liquidation)
Once notified of a claim, Setanta’s Liquidator will proceed to validate whether the claim:
Is covered by a valid insurance policy issued by Setanta, and
Is finalised as a result of (i) a Court order; or (ii) an Injuries Board Order to Pay; or (iii) a settlement agreement being in place.
Notice to Policyholders
At an Extraordinary General Meeting of Setanta Insurance Company Limited (the ”Company”) held on 16th April 2014 it was resolved that the Company surrender its insurance business licence to the Malta Financial Services Authority and be immediately dissolved. Furthermore at a meeting of creditors of the Company held on 30th April 2014 I was appointed as liquidator of the Company.
Take notice that all policies of insurance issued by or on behalf of the Company have now been cancelled. All private vehicle insurance policies issued by the Company which remained active on 26th May 2014 were cancelled with immediate effect on that date. In addition all commercial vehicle Insurance policies issued by the Company which remained active on 29th May 2014 were cancelled with immediate effect on that date. Notices of cancellation were issued on 19th May and all policies were cancelled in accordance with the applicable policy documents.
I believe this to be in the best interest of policyholders as it avoids a situation where consumers continue to drive vehicles insured by the Company in circumstances where their claims would be unlikely to be paid in full.
This notice supercedes all previous Company and third party communications.
Policyholders and brokers should continue to send correspondence on individual Claims or other claims matters to the Company at:
Tel: 0818 255 255