Setanta Insurance Debacle

Setanta Insurance Debacle

Setanta Insurance, although based in Malta, operated solely in Ireland. The company collapsed in April, 2014, affecting approximately 75,000 policy holders and leaving more than 1,500 of road traffic victims in limbo.

It emerged recently at a creditors’ meeting in Malta that Setanta may be able to pay only 22% of the
value of the outstanding claims from its own resources if winding up of the company drags on for
another 3 years.

When added to awards from the state’s insurance compensation fund, this would be enough to cover
just 87% of the agreed value of claims, leaving a shortfall which is increasing pressure on the government to help claimants, many of whom have already waited more than 3 years for their money.

In total, the value of claims outstanding against Setanta amounts to €95m. Recently, an initial tranche of €9.9m was submitted to the High Court for payment from the insurance compensation fund. This would lead to a distribution of €6.4m (as the fund can only pay 65% of the amount claimed).

The next batch is due to be submitted for payment in February 2018.