Hope for Setanta insurance customers

Consumers and small businesses left out of pocket following the collapse of Setanta Insurance will be able to claim back part of their premiums if they paid by credit card.

Mastercard has confirmed that customers who used their credit cards to purchase insurance premiums with Setanta Insurance are entitled to claim back a portion of the amount paid.

Some 75,000 Irish consumers have been left uninsured after the Malta-based parent company of Setanta Insurance went into liquidation, many believing they lost all of the money they handed over when they paid for 12 months’ cover up front.

A spokesperson for Mastercard confirmed that if a customer had used their credit card to pay for the insurance than they would be able to claim back a portion of the money they paid out.

“Mastercard rules determine liabilities between issuers and acquirers. An issuer will be allowed to charge back a transaction or a portion of the transaction if the services paid for are not provided or are only partially provided. For example, a cardholder could claim that he/she paid a premium for a year’s insurance coverage and only received five months’ coverage. The chargeback amount would therefore be 7/12 of the total transaction amount,” the spokesperson said.

This means that the amount of money that a Setanta customer would be entitled to claim is proportional to the period left to run on their premium.

CEO of the Consumer Association of Ireland, Dermott Jewell, said that due to a quirk in Irish law, all that customers needed to do was to contact their credit card company and provide proof of payment and the credit card company will have to try and reclaim the money from either the broker or Setanta.

Section 14 of the Sale of Goods Act says that a credit card company is liable for the breach of any contract of sale.

“Once the credit card company have acknowledged that there is an entitlement, all the consumer has to do is give them proof of sale and then the credit card company will have to handle the rest,” he said.

© Irish Examiner Ltd. All rights reserved

More in this Section

No panic at 81p, but Irish firms will be watching sterling

Irish exporters need a new business model to prosper

Fortune may not favour the bold in Brexit economic aftermath

Time for executives to prioritise employees’ needs


You might also like

Breaking Stories

Second ratings agency downgrades UK's credit-worthiness

Security drones will help spot migrants trying to reach Britain through the Channel Tunnel, as fears rise that Brexit could lead to border breaches

Ratings agency strips UK of top credit grade after Brexit vote

If you need more stickers in your life then Twitter has just the thing

Lifestyle

Tackling migraines head on is key to dealing with the disorder

We need to wake up to the idea of Fairtrade coffee brands and the good they do

The Leaving Cert does not define who I am

Foals are surfing the wave and love playing the bigger venues

More From The Irish Examiner