Marvellous .. looks like the state (We the taxpayers) caught once again. This time for SETANTA collapse - €90 Million

robut

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Looks like the state (the taxpayers) to pay up for SETANTA collapse - €90 Million

State faces €90m bill from Setanta collapse after Supreme court ruling

The State is potentially liable for hundreds of claims against collapsed insurer Setanta after the Supreme Court, by a five to two majority, overturned a finding the Motor Insurers’ Bureau of Ireland was potentially liable.

The liquidator of Maltese-registered Setanta, which sold insurance policies exclusively in Ireland before it
collapsed in 2014, has determined the cost of an estimated 1,750 claims could run to about €90 million.

The Supreme Court majority upheld the MIBI argument that various agreements with the Minister for Transport did not cover insolvent insurers.

MIBI had argued the State’s Insurance Compensation Fund (ICF) should pick up the Setanta bill, as was done in the cases of PMPA and Quinn Insurance and the Supreme Court ruling means claims against Setanta will be met from the ICF, set up under the Insurance Act 1964.

The court noted the relevant scheme means claimants against Setanta policy holders will recover no more than 65 per cent, as opposed to a potential 100 per cent if MIBI was held liable.
The bottomless pit that is the taxpayer money tree just keeps on giving.

And those 2 names front and centre again - PMPA & Quinn Insurance .. now add Setanta.


EDIT - I would have also been pee'd off by this point:

Why isnt the Insurance business in Ireland not paying for this / picking up the tab via some sort of manditary fund? But then i thought .. yeah, its you and me would end up paying for this then also via hiked premiums.

So it looks like either way WE will be paying for this ..
 
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Mushroom

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State faces €90m bill from Setanta collapse after Supreme court ruling



The bottomless pit that is the taxpayer money tree just keeps on giving.

And those 2 names front and centre again - PMPA & Quinn Insurance .. now add Setanta.

Being discussed on LIVELINE right now ..

That's a great result. Well done to the Supreme Court!

(I thought it was very unfair that the MRBI should have been made to foot that big bill.)

The State was responsible for regulating the insurance sector and the State failed to do its job.
Wrong!!!
 
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robut

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That's a great result. Well done to the Supreme Court!

The State was responsible for regulating the insurance sector and the State failed to do its job.
Actually YES .. thats a fair point.

Just that we the tax payer AGAIN have to take it in the neck because the STATE as another entity F*cked up.

Which brings us to broader thoughts of the lack of accountability or any consequence whenever THE STATE fails time and time again!
 

bokuden

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Actually YES .. thats a fair point.

Just that we the tax payer AGAIN have to take it in the neck because the STATE as another entity F*cked up.

Which brings us to broader thoughts of the lack of accountability or any consequence whenever THE STATE fails time and time again!
This will continue to happen as long as people vote for fianna fail and fine gael.
 

Old Mr Grouser

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Setanta Insurance Company Ltd was authorised to do business in Ireland by the Malta Financial Services Authority.

Why isn't Malta required to pay compensation?

When Quinn Insurance collapsed Ireland had to meet the cost of claims in the UK.
 
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Aristodemus

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Knew this would happen


 

enuffisenuff

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C*nts one and all
 

Mushroom

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Setanta Insurance Company Ltd was authorised to do business in Ireland by the Malta Financial Services Authority.

Why isn't Malta required to pay compensation?

When Quinn Insurance collapsed Ireland had to meet the cost of claims in the UK.
A very good question. All that I can find about it is this report - "the Irish Brokers Association said it expects the Central Bank to put urgent pressure on Malta's Financial Services Authority to ensure that the Irish taxpayer does not have to pick up the bill" written back in April 2014!!!

But that isn't what this court case was about.
 
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Mushroom

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That's a great result. Well done to the Supreme Court!

The State was responsible for regulating the insurance sector and the State failed to do its job.

Actually I'm wrong about that.

Setanta Insurance operated through brokers in Ireland since 2007 – but was based in Malta. It was not regulated by the Irish Central Bank.

Although it only traded in the Republic, the insurer was established in Malta in 2007, with backing from a number of individuals linked to the insurance industry in Ireland. Industry sources said the regulatory regime in Malta was considerably less onerous than in the Republic.

The company never sought authorisation from the regulator to trade here but was permitted to under EU Freedom of Service rules. (I wonder whether we have former Commissioner Charlie McCreevy to thank for those rules?)

A recent report from Charlie Weston shows that the Central Bank was recently criticised by Insurance Brokers (!!!) for instructing them that they must make it clear to Irish consumers that certain insurers are not regulated in Ireland, and to state the country where such insurers are regulated.

Central Bank denies trying to force insurance companies authorised outside State to stop doing business here - Independent.ie
 

robut

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Actually I'm wrong about that.

Setanta Insurance operated through brokers in Ireland since 2007 – but was based in Malta. It was not regulated by the Irish Central Bank.

Although it only traded in the Republic, the insurer was established in Malta in 2007, with backing from a number of individuals linked to the insurance industry in Ireland. Industry sources said the regulatory regime in Malta was considerably less onerous than in the Republic.

The company never sought authorisation from the regulator to trade here but was permitted to under EU Freedom of Service rules. (I wonder whether we have former Commissioner Charlie McCreevy to thank for those rules?)

A recent report from Charlie Weston shows that the Central Bank was recently criticised by Insurance Brokers (!!!) for instructing them that they must make it clear to Irish consumers that certain insurers are not regulated in Ireland, and to state the country where such insurers are regulated.

Central Bank denies trying to force insurance companies authorised outside State to stop doing business here - Independent.ie

Ah Mushroom .. So the state DID NOT F*ck up???

Will i have to adjust my OP again so :D
 

Mushroom

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Some more research has established that the Supreme Court's verdict will mean that some claimants won't get the full awards which they have been awarded as the Insurance Compensation Fund is limited to paying out 65% of a claim or up to €825,000, whichever is lower. This means that some claimants won't be able to get the full amount of compensation due to them, which is very unfortunate.
 

Mushroom

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Ah Mushroom .. So the state DID NOT F*ck up???

Will i have to adjust my OP again so :D
'fraid so. :(

It's probably easiest just to blame McCreevy for introducing those EU Freedom of Services rules. Because that's the root of this problem. Yet another FF ****-up.
 

robut

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'fraid so. :(

It's probably easiest just to blame McCreevy for introducing those EU Freedom of Services rules. Because that's the root of this problem. Yet another FF ****-up.
DONE :D

So if an EU rule, even though McCreevy did introduce it .. It also applies to rest of EU?

If so - We did not hear them rushing to disagree with this move either? :D
 

gerhard dengler

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DONE :D

So if an EU rule, even though McCreevy did introduce it .. It also applies to rest of EU?

If so - We did not hear them rushing to disagree with this move either? :D
Politicians permit the hard pressed taxpayers to be the ultimate backstop for (their political) mistakes.

Taxpayers need to start to wake up and force politicians to be far more accountable for the public purse.

It's not others peoples money - it's YOUR money.
 

Mushroom

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So if an EU rule, even though McCreevy did introduce it .. It also applies to rest of EU?

If so - We did not hear them rushing to disagree with this move either?
It's the EU Services Directive of 2006. McCreevy was the EU Commissioner who brought it in.
 


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