Courts / Ireland / Report

Motor Insurers Bureau appeals ruling that it is liable for Setanta claims

Summary

An appeal by the Motor Insurers Bureau of Ireland (MIBI) against a High Court ruling that it must pay out on outstanding claims following the collapse of Setanta Insurance Company in 2014 has opened before the Court of Appeal. The MIBI is appealing Mr Justice John Hedigan's finding that it was liable to pay out in respect of claims against persons who were insured with Setanta at the time of its liquidation. The case has important implications for motor insurance premia as well as parties involved in claims concerning Setanta. Following Setanta's liquidation, approximately 1,750 claims by and against Setanta policyholders remained in existence. The High Court was asked to determine whether the MIBI or the Insurance Compensation Fund were liable for the claims. Paul Gallagher SC for the MIBI said the case raised a very important issue concerning the liabilities arising from the insolvency of one of its members. Counsel argued that the High Court's interpretation of a sub-clause in the MIBI Agreement was 'too narrow' and that the judgment should be set aside. The appeal is opposed by the Law Society. The appeal before the President of the Court of Appeal, Mr Justice Sean Ryan, Ms Justice Mary Finlay Geoghegan, and Mr Justice Gerard Hogan continues.

Who, what, where, when and why

What: Report matter: Motor Insurers Bureau appeals ruling that it is liable for Setanta claims. Procedural stage: appeal

When:

• April 2014 Hearing Or Sentence
• May 29th, 2014 Other
• 2016-01-12 Publication

Why: The MIBI, which covers the cost of claims related to uninsured drivers claimed through levies imposed on customers, argued it did not have to satisfy awards against policy holders where the insurer was unable to pay all or part of the award because of insolvency. CNI source report

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Stage Appeal

Read the original CNI report