There was some respite for Kildare residents caught up in the whole Setanta Insurance Saga when the High Court recently held that the MIBI is liable to pay out in respect of claims against persons who were insured with Setanta at the time of their liquidation in April 2014.
Following the liquidation of the Setanta Insurance Company on the 30th of April, 2014 approximately 1,750 claims by and against Setanta policyholders remained in existence. An issue arose then as to who was liable to cover these claims and the Law Society argued that liability should rest with The Motor Insurers’ Bureau of Ireland (the MIBI).
The High Court also directed that it may not approve payment under Section 3 of the Insurance Act, 1964 unless it appears that the MIBI is unlikely to meet the claim notwithstanding its obligation to do so.
This means the MIBI will have to cover any existing claims for Compensation by people injured in accidents caused by policy holders of Setanta.
The MIBI is a private company set up by the Motor Insurance Industry. Participation by motor insurance companies is not voluntary and is required under the Road Traffic Act of 1961. The MIBI is the body through which effect is given to State’s obligations under EU Motor Insurance Directives in respect of the provision of certain compensation to road traffic accident victims.
Speaking about the High Court Judgment Naas based Personal Injury Solicitor said today “this decision provides much needed clarity for Plaintiffs who are connected with the Setanta Insurance liquidation. If the decision is not appealed to the Court of Appeal then the decision will be binding and the MIBI will have to start settling injury claims”.