We need your help now
Support from readers like you keeps The Journal open.
You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.
If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.
Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
By continuing, you are indicating that you accept our Terms of Service and Privacy Policy.
Updated 3.18pm
SHAREHOLDERS AT SETANTA Insurance Limited have decided to wind up the company, saying it is unable to confirm whether customer claims will be met.
The Central Bank confirmed the move today but pointed out that the Malteste firm’s financial position is not supervised by the bank as it is subject to prudential supervision by the Maltese Financial Services Authority.
The authority notified the bank yesterday of the shareholders’ decision and the process will take place in Malta.
On its website, the vehicle insurance company said it has reached a conclusion that a “solvent run-off is no longer possible”.
The Central Bank will require Setanta to write to all policyholders to advise them of the situation and its implications for them.
“Setanta is not in a position to confirm that claims will be met in full since any and all claims will be subject to the relevant liquidation process,” the bank said in a statement today. “Policyholders should therefore make arrangements for alternative cover without delay.”
Commenting on the news today, Managing Director of insuremyvan.ie Jonathan Hehir said thousands of small business owners appear now to be “stranded without cover”.
“A couple of months ago when Setanta first ran into difficulty it assured policyholders that claims will be paid – however now it seems that those with outstanding claims will be left in a very precarious predicament,” he added.
Customers have already been expressing their concern with one business saying they have had to pull their van in because they don’t know if they are covered:
First published 13.44
To embed this post, copy the code below on your site
That’ll be another levy on all non-life policies so. Furthermore, why is the CB allowing firms operate in this jurisdiction without any oversight in this jurisdiction? Can I register a dodgy financial services firm in Malta, operate in Ireland & freely run roughshod over all local regulations too please?
Yes apparently if the CB in Ireland is involved….
Yes, any insurer offering cover within another EU country can open in any other EU country.
No there won’t be a levy because it’s being wound up, not bailed out – unlike Quinn insurance. So it’s the exact opposite of what you’re saying.
I only took out my policy with them (through a broker) six weeks ago. €550 gone just like that. Broker says I need new insurance immediately but I just can’t come up with another €600 that quickly. Very very upset.
(I realise I’m hardly a big customer for them but it’s a massive blow to me, financially)
Would seriously question the broker who sold you this six weeks ago – it was well flagged in the business that setanta were in trouble months ago
Actually you were better off getting insurance through the broker this time.they have to honour the policy as they shared liability with setanta. Theyll have to get the new policy for you from a different company wuthout extra cost to you. Check with consumer rights website. Also if you paid for it using credit card you might have a claim that way. Might.
Broker has zero liability unfortunately.
Well I hope they get prosecuted if they leave their customers without insurance. After all that’s what happens if people drive without purchasing insurance.
My father still has 6 months left on his insurance with this crowd, yet he has to hand out more money as soon as possible to get new insurance as it is his work van! So unlucky.. Money money money!
Do you insure or take your chances? Or insure and again take your chances.
Never heard of Setanta insurance …. luckily
What’s the point of an Irish Financial Regulator if this can happen in Ireland? Let the EU firms in by all means, but make them subject to OUR laws. Though flags of convenience were only for dodgy ships.
Central bank only regulates conduct of business rules in Ireland for other EU financial institutions, they can’t do anything around solvency.
Solvency is the most basic of trading fundamentals, if the Irish Regulator is not watching that for all insurance firms here then light-touch regs from the tiger days remain.
No it’s fundamental European law to allow free trade in services. We are trusting other European regulators to do their job. It’s the same everywhere in Europe.
The law states dat they have to cover claims for 60days after the liquidator is appointed.
I’m insured with these cowboys, just rang my broker and she said not to drive until you hear more. Joke.
It’s disgraceful, my dad had an accident few wks ago and his car is wrote off. He was given a settlement figure on Monday so on that basis got a bridging loan to get a car tues as he’s been without for 2 wks. Now he a loan with which has to be repaid and no payment to cover it :( feel sorry for him as its his 1st claim ever and he’s in his 60′s. There should be tighter controls when letting a company operate in ireland. Or they should be insured the same as travel agents to cover things like this.
And another insurance company has problems but nothing to do with the central bank. When can we expect a new levy on all insurance products to pay for this one?
In other words there are as of now tens of thousands of uninsured motorists driving about the country that are technically uninsured.
Didn’t a similar thing happen with Carole Nash in the late 90′s when their main underwriter went bust.
Cute hoors too announcing this today with the Dail closed now for the next 2 weeks.
I have a small business with 7 vans grounded today insured through setanta and a new commer called Peronas also operating outside Ireland.
My broker has given me 3rd party cover for 60 days while the details are teased out. As a small business I am going to be hit hard by this if i have to re insure with another company. Most likely i will have to let people go.
Bunch of gangsters. Maltese Falcon pecking at the carcas pf the celtic tiger….
Not always a good idea to go with the cheapest Insurer.
I can’t imagine that there will be an increase in the non life levy as a result of the collapse of this company, they are a relatively small player in the market (75,000 policy holders). It will be a major boost for the big companies in the market, Axa, Aviva etc however.
They aren’t Irish so there won’t be a levy. Central bank can do nothing about the solvency of foreign financial institutions. They only have control over advertising and that kind of stuff.
There could well be a new levy if they cannot honour outstanding claims, and it appears they cannot. The firm maybe foreign but the claims and people are Irish.
I could be wrong but I don’t think that will happen. It would probably be difficult to legally separate the Irish claims.
According to RTE there could be a levy put in place.
I’d drive away and not give two hoots.
But, your honour… I got no letter stating that my policy was invalid.
Nope, never listen to radio or watch TV…
Case thrown out.
Also, some folk genuinely can’t afford to re-insure their vehicle. I just paid Setanta about 500 for my premium.
I havn’t read a newspaper since the property boom era, got rid of TV 2 years ago and the radio in my car broke. Fact.
Paid my premium last month to Setanta. 550 euro because open claim. Claim was in my favour so I am owed about 500 back from Setanta for higher premium while claim was open. Double whammy.
My broker tells me that all 3rd party claims will be paid however there is major doubt if comprehensive policies are covered. I think anyone comprehensively insured should ask their brokers to confirm in writing what the situation is.
as far as I can recall, every insurance company operating in Ireland, must deposit a bond with the government! Interesting to discover if corrupt Irishmen behind it!
Hopefully another underwriter will step in an cover the risk. Although i think alot of people are jumping to conclusions of what is happening when the customers have not recieved letters and there has been no prss confrence yet.
Also does the CB not have a fund in place to cover consumers in case this happens. i was under the impression 8% of all premiums went into such a fund
Is the insurance levy fund pmpa, Quinn etc not in place to cover such eventualities?
This is what cheap brings about. Those of us with traditional companies couldn’t have to think about all this. My advice is that, is not always abt cheap insurance quote, but good services like other good companies around. Feel sorry for their client . A word to a wise
What about the Direct Debits ??????
I have purchased my policy with them in November but sold my car in Feb – thank G – as I took DD option was so so suprised when got a LOAN AGREEMENT for my policy saying that the ” Financial Co” will pay my premium in full and I have to agree with the LOAN to go ahead with my policy. Where U the same ????? If yes what about the LOANS for the polices that do not exist any more? IS THIS A NEXT BIG FRAUD IN IRELAND ?
What will happen to someone who has left their car in the long-stay car park at Dublin airport and is away on a holiday or business abroad, unaware of the fact that their car is no longer covered. When they return and collect their car to drive home, will they be prosecuted and held fully responsible for driving uninsured especially if they are involved in an accident. We heard only yesterday a judge saying ignorance of the law is no excuse. Also, if a motorist has to buy new insurance, will the government pay back the VAT and insurance levy part of the premium that is now unusable?
Mad hounds the lot of them
I was thinking of all the Setanta (un-insured) drivers who will be travelling this weekend, a weekend where statistically people are more likely to have an accident. We could see the first court case for someone getting prosecuted for not being insured owing to Setanta’s collapse.
Use precise geolocation data. Actively scan device characteristics for identification. Store and/or access information on a device. Personalised advertising and content, advertising and content measurement, audience research and services development.
These cookies are necessary for the website to function and cannot be switched off in our systems. They are usually only set in response to actions made by you which amount to a request for services, such as setting your privacy preferences, logging in or filling in forms. You can set your browser to block or alert you about these cookies, but some parts of the site will not then work.
These cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.
These cookies enable the website to provide enhanced functionality and personalisation. They may be set by us or by third party providers whose services we have added to our pages. If you do not allow these cookies then these services may not function properly.
These cookies allow us to count visits and traffic sources so we can measure and improve the performance of our site. They help us to know which pages are the most and least popular and see how visitors move around the site. All information these cookies collect is aggregated and therefore anonymous. If you do not allow these cookies we will not be able to monitor our performance.
Cookies, device or similar online identifiers (e.g. login-based identifiers, randomly assigned identifiers, network based identifiers) together with other information (e.g. browser type and information, language, screen size, supported technologies etc.) can be stored or read on your device to recognise it each time it connects to an app or to a website, for one or several of the purposes presented here.
Advertising presented to you on this service can be based on limited data, such as the website or app you are using, your non-precise location, your device type or which content you are (or have been) interacting with (for example, to limit the number of times an ad is presented to you).
Information about your activity on this service (such as forms you submit, content you look at) can be stored and combined with other information about you (for example, information from your previous activity on this service and other websites or apps) or similar users. This is then used to build or improve a profile about you (that might include possible interests and personal aspects). Your profile can be used (also later) to present advertising that appears more relevant based on your possible interests by this and other entities.
Advertising presented to you on this service can be based on your advertising profiles, which can reflect your activity on this service or other websites or apps (like the forms you submit, content you look at), possible interests and personal aspects.
Information about your activity on this service (for instance, forms you submit, non-advertising content you look at) can be stored and combined with other information about you (such as your previous activity on this service or other websites or apps) or similar users. This is then used to build or improve a profile about you (which might for example include possible interests and personal aspects). Your profile can be used (also later) to present content that appears more relevant based on your possible interests, such as by adapting the order in which content is shown to you, so that it is even easier for you to find content that matches your interests.
Content presented to you on this service can be based on your content personalisation profiles, which can reflect your activity on this or other services (for instance, the forms you submit, content you look at), possible interests and personal aspects. This can for example be used to adapt the order in which content is shown to you, so that it is even easier for you to find (non-advertising) content that matches your interests.
Information regarding which advertising is presented to you and how you interact with it can be used to determine how well an advert has worked for you or other users and whether the goals of the advertising were reached. For instance, whether you saw an ad, whether you clicked on it, whether it led you to buy a product or visit a website, etc. This is very helpful to understand the relevance of advertising campaigns.
Information regarding which content is presented to you and how you interact with it can be used to determine whether the (non-advertising) content e.g. reached its intended audience and matched your interests. For instance, whether you read an article, watch a video, listen to a podcast or look at a product description, how long you spent on this service and the web pages you visit etc. This is very helpful to understand the relevance of (non-advertising) content that is shown to you.
Reports can be generated based on the combination of data sets (like user profiles, statistics, market research, analytics data) regarding your interactions and those of other users with advertising or (non-advertising) content to identify common characteristics (for instance, to determine which target audiences are more receptive to an ad campaign or to certain contents).
Information about your activity on this service, such as your interaction with ads or content, can be very helpful to improve products and services and to build new products and services based on user interactions, the type of audience, etc. This specific purpose does not include the development or improvement of user profiles and identifiers.
Content presented to you on this service can be based on limited data, such as the website or app you are using, your non-precise location, your device type, or which content you are (or have been) interacting with (for example, to limit the number of times a video or an article is presented to you).
With your acceptance, your precise location (within a radius of less than 500 metres) may be used in support of the purposes explained in this notice.
With your acceptance, certain characteristics specific to your device might be requested and used to distinguish it from other devices (such as the installed fonts or plugins, the resolution of your screen) in support of the purposes explained in this notice.
Your data can be used to monitor for and prevent unusual and possibly fraudulent activity (for example, regarding advertising, ad clicks by bots), and ensure systems and processes work properly and securely. It can also be used to correct any problems you, the publisher or the advertiser may encounter in the delivery of content and ads and in your interaction with them.
Certain information (like an IP address or device capabilities) is used to ensure the technical compatibility of the content or advertising, and to facilitate the transmission of the content or ad to your device.
Information about your activity on this service may be matched and combined with other information relating to you and originating from various sources (for instance your activity on a separate online service, your use of a loyalty card in-store, or your answers to a survey), in support of the purposes explained in this notice.
In support of the purposes explained in this notice, your device might be considered as likely linked to other devices that belong to you or your household (for instance because you are logged in to the same service on both your phone and your computer, or because you may use the same Internet connection on both devices).
Your device might be distinguished from other devices based on information it automatically sends when accessing the Internet (for instance, the IP address of your Internet connection or the type of browser you are using) in support of the purposes exposed in this notice.
The choices you make regarding the purposes and entities listed in this notice are saved and made available to those entities in the form of digital signals (such as a string of characters). This is necessary in order to enable both this service and those entities to respect such choices.
have your say