Government approves insurance bill following Setanta ruling

Government approves insurance bill following Setanta ruling

The Government has approved the drafting of legislation to implement the recommendations of the Review of the Framework for Motor Insurance Compensation in Ireland.

The Insurance (Amendment) Bill 2017 also addresses the Supreme Court’s ruling on Setanta, which found the Insurance Compensation Fund (ICF) is liable for third party claims arising from a motor insurer insolvency.

The bill will increase the level of insurance compensation fund coverage for future third party motor claims from 65 per cent to 100 per cent in order to bring it into line with the compensation levels paid out by the Motor Insurer’s Bureau of Ireland (MIBI).

Finance Minister Paschal Donohoe said the bill would “provide greater certainty for both consumers and industry, regarding the insurance compensation framework in Ireland”.

Michael D’arcy, minister of state for insurance, added: “A key focus of the Government is on ensuring that the compensation paid to third party motor insurance claimants in any future insolvencies is in line with the amounts paid by the Motor Insurance Bureau of Ireland to those involved in collisions with an uninsured driver.

“This difference in compensation levels was the basis for the Setanta case and needs to be appropriately addressed in legislation. I welcome this Bill which seeks to ensure that confidence is maintained in the motor insurance system in Ireland.”

Share icon
Share this article: