Law Society welcomes news of compensation for Setanta insolvency

The Law Society of Ireland has welcomed news that victims affected by the Setanta insolvency will be compensated in full.

Following the Supreme Court decision in Law Society of Ireland v Motor Insurer’s Bureau of Ireland, the Law Society has lobbied Government to ensure that victims who would otherwise be only partly compensated for injuries receive full compensation.

Finance Minister Paschal Donohue has announced that, in principle, the State will be responsible for ensuring all “third party claimants are compensated in full”.

Michael D’Arcy, minister of state for financial services and insurance, added: “Officials at the Department of Finance are currently discussing with the Attorney General’s Office whether there are any competition or legal issues such as State aid associated with such an intervention and what if anything are the consequences of this.

“Once clarity is obtained on this matter, we will announce further details on how we intend to facilitate such payments to Setanta third party claimants.”

In an email to solicitors, Law Society president Michael Quinlan said the Government announcement is “a victory for the consumer”.

Mr Quinlan added: “Both the victim, who would have been severely undercompensated, and the policyholder, who may have been the subject of a claim on personal assets, have had their rights vindicated. The only voice they have is their solicitor. The solicitor’s voice is the Law Society. Together, we have done our job and ensured an egregious wrong has been corrected.”