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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
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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.
have your say