Legal case may decide Setanta Insurance payout

The outcome of an imminent legal case may determine the level of compensation customers of the former Setanta Insurance will be paid — with costs potentially climbing to multiples of the original figure.

The dispute centres on whether or not the Motor Insurers’ Bureau of Ireland (MIBI) is liable for claims of the Maltese-registered insurer, which went into liquidation last April.

A challenge to the attorney general’s advice that MIBI would not foot part of the potential €90m bill has been thrown into doubt after the Law Society expressed concern.