Back in June we told you about the partial compensation received by claimants of insolvent Maltese firm Setanta Insurance in Ireland… now the country’s High Court has approved further payments by the Insurance Compensation Fund, which has a 65% payout limit, to cover the 35% gap for certain claims.
An Irish Examiner report noted that the Insurance Amendment Act 2018 had removed the statutory cap for third-party claims and third-party legal costs, meaning those under these categories will now be paid in full. First-party claims like own damage, however, are still subject to the limitation.
The new payment orders amount to €20.6 million, and involve more than 1,200 eligible claims. The compensation will be paid in three tranches.
The latest and now granted High Court application for payment approval, according to the report, is the fourth since 2016. It was sought by the State Claims Agency in light of the changes in legislation.
Setanta Insurance left Ireland in 2014 with outstanding claims worth approximately €90 million.
