Drivers face further hike in premiums to cover Setanta claims

Motorists are facing yet another hike in insurance premiums to cover the cost of the €90m in outstanding claims left following last year’s collapse of Setanta Insurance Company.

The Motor Insurers’ Bureau of Ireland, the body which is responsible for compensating victims of road traffic accidents caused by uninsured and unidentified vehicles, has been ordered by the High Court to bear the cost of 1,750 outstanding claims by and against Setanta policyholders.

MIBI said the ruling will “undoubtedly” put upward pressure on premiums and increase the risk of motor insurance companies pulling out of the Irish market.