Claiming from liquidated insurance company

PizzamanIRL

If Person A is in a car accident with Person B who is in the wrong and claims from the insurance company of Person B a number of months later which is now gone into liquidation, who pays the compensation?

Dangel4x4

If the insurance company has been liquidated, I would guess you claim off MIBI.

Are you person A or person B?

PizzamanIRL

Dangel4x4 wrote: »

If the insurance company has been liquidated, I would guess you claim off MIBI.

Are you person A or person B?

B.

The other person wants compensation and has claimed through injury boards but it is going to be handled by the liquidator appointed.

Pro Hoc Vice

PizzamanIRL wrote: »

B.

The other person wants compensation and has claimed through injury boards but it is going to be handled by the liquidator appointed.

I have been informed 2 things in relation to this issue, the first was that the MIBI would be taking over the liabilities, the second was that the Insurance Compensation Fund will deal with claims.

Current advice from the Law society is on ongoing and new claims to join MIBI. http://www.lawsociety.ie/News/Media/Press-Releases/Law-Society-concerned-for-policyholders-of-Setanta-Insurance/

DrPhilG

Any update from the OP on this? I'm in a similar situation. Started a thread over in motors but was told that legal might be a better fit and a search here threw this thread up.

Details of my motors thread here;
http://www.boards.ie/vbulletin/showthread.php?t=2057345670

I'm just looking for some clarification on whether there is any update on the ICF or MIBI covering all/part of the claim or whether I need to brace myself for a huge PI claim dropping on my doorstep.

AndonHandon

DrPhilG wrote: »

Any update from the OP on this? I'm in a similar situation. Started a thread over in motors but was told that legal might be a better fit and a search here threw this thread up.

Details of my motors thread here;
http://www.boards.ie/vbulletin/showthread.php?t=2057345670

I'm just looking for some clarification on whether there is any update on the ICF or MIBI covering all/part of the claim or whether I need to brace myself for a huge PI claim dropping on my doorstep.

As far as I'm aware the MIBI has decided that it will not be liable for the claims as the drivers were covered by a valid insurance policy at the time of the accident and the MIBI is only liable for uninsured drivers. As a result, the ICF is most likely going to have to take over the claims. I am currently seeking out sources on this and I will ask around to clarify so don't take what I have said as gospel.

DrPhilG

The finance minister would seem to agree.

http://m.independent.ie/business/setanta-insurance-customers-face-some-bills-for-claims-30833480.html

goz83

What about an insurer pulling out of Ireland, but it still trades elsewhere? a number of companies have done this in the past and I wonder what happens with claims. XS Direct are the most recent insurer to pull out of Ireland, but trade in the UK under a different name.

AndonHandon

I am still looking for more information but what makes a situation like this so complicated is in relation to the following types of claimants; those who had received judgment against the liquidated insurer but have yet been paid, those who have lodged claims but have not received an acceptance/rejection of their claim, claims where legal proceedings had been issued against the driver insured by the liquidated insurer and those claimants yet to lodge their claims. There are a lot of other variables which could be thrown in meaning, OP, that there is no definitive answer to your OP question until cases start coming before the courts and/or the government step up.

DrPhilG

At least the ICF seem to be taking on a good percentage of the claims, although I understand that will only be for private customers. Businesses (which I would imagine a lot of people were given that they specialised in van insurance) could still be screwed.

DrPhilG

http://www.setantainsurance.com/

Setanta's home page says this; (part in red is the main bit)

Setanta's Liquidator wrote:

Processing of Claims
Claims made against Setanta Insurance policies, whether before or after the commencement of the liquidation, continue to be managed by Setanta claims handlers.

When new personal injury claims are made to the Injuries Board they notify my solicitors who in turn liaise with the Setanta Insurance claims handlers, who are actively managing ongoing claims. The Setanta Insurance claims handlers will provide recommendations in respect of how each claim should be dealt with, just as they did prior to liquidation, and this is notified to the policy holder. Thereafter the assessment process by the Injuries Board is either accepted or rejected in the normal way. A similar process is followed once the Injuries Board publish their award.

In the event that the Injuries Board issues an authorisation (following the rejection of either the assessment process or the award) and proceedings are issued, Setanta Insurance will appoint solicitors to deal with the claim.

Where there was litigation already in being prior to the liquidation in April 2014, then those cases continue to be managed by the Setanta Insurance claims handlers and by the solicitors appointed by Setanta Insurance.

Payment of Claims
As liquidator, I am entitled to access the Insurance Compensation Fund which is a Fund administered by the High Court through the Accountant of the High Court.

There are a number of conditions to being able to access the Fund the following being of particular relevance:

The conditions being
-Does not cover premium refunds
-maximum of 65% of the claim, or €825k
-does not cover amounts due to corporate bodies