Motor Insurance Bureau reassures Setanta claimants

The Motor Insurers Bureau of Ireland (MIBI) has moved to assure the public with outstanding claims against Setanta insurance that they are entitled to have their third party claims paid.

The move follows concern from the Law Society of Ireland that many of the 1,000 people who have claims against the motor insurer, are “petrified” their claims will not be paid out.

Despite only insuring Irish customers, Setanta was regulated in Malta and the Maltese Regulator is not prepared to cover any outstanding claims.

Law Society president John P Shaw said: “Confusion over payment of these claims which are likely to number over a thousand, has left many consumers worried that they will not receive the whole amount of their entitlement. In the case of policyholders, there is a concern they will be personally liable for any successfully made claims”.

“The Law Society has written to both the MIBI and the Insurance Compensation Fund to confirm that no claimant will suffer any loss as a result of this event. I have received no response from the Insurance Compensation Fund and have received a non-committal letter from the MIBI in which they have not confirmed that they will be responsible for any shortfall,” he said.

When contacted by the Irish Examiner, John Casey of the MIBI said, under EU law, all innocent third level parties were entitled to compensation when a driver had not been uninsured.