It looks like Irish consumers left hanging by insolvent provider Setanta Insurance will have to ask ‘when’ a few more times as the claims process is met with another roadblock.
While it’s not entirely a new hindrance, it’s now what’s getting in the way for full compensation to be paid… we’re talking about Ireland’s Insurance (Amendment) Bill 2017, which was drafted in July and, as reported by The Times, is still under pre-legislative scrutiny.
The new legislation will adjust the level of cover to claimants of insolvent insurers in light of the Maltese firm’s liquidation failing to compensate outstanding claims worth about €90 million.
Last year the Supreme Court of Ireland ruled that those with pending claims should be compensated from the country’s Insurance Compensation Fund going forward. The trouble is, a payout limit of €825,000 or 65% of a claim exists.
Irish finance minister Paschal Donohoe announced in January that the government had agreed in principle to ensure full compensation, but department officials had to clear with the attorney-general’s office that doing so would not be a violation of rules concerning state aid.
According to The Times, clearance has now been granted but the new legislation involving the compensation fund will still have to be passed first before the government can make good on its promise to compensate in full.
So the question remains: When?
