The liquidator of Setanta Insurance in Malta has expressed his "deep concern" at the Motor Insurance Bureau of Ireland's decision this week to seek leave to appeal to the Supreme Court rulings that it should pay the costs of claims relating to the company.
Speaking to The Irish Times from Malta, Paul Mercieca said this move would delay the payouts to claimants and increase the cost of the liquidation process.
“Everything is more or less in limbo,” Mr Mercieca said. “We will incur more costs in keeping a small staff without any resolution in sight. The claims we have naturally continue to develop and deteriorate. It’s very frustrating.”
Mr Mercieca, a retired former head of accounting firm Deloitte in Malta, said he would seek to ascertain how long the Supreme Court process would take, adding that he was not a party to this action but an "interested observer" as liquidator to the company.
Setanta was registered in Malta but sold insurance policies exclusively in Ireland before it collapsed in 2014. Mr Mercieca has determined that the cost of claims could run to about €90 million with the number of claimants estimated at 1,750.
Both the High Court and the Court of Appeal have found that MIBI, which has 40 insurers as members, should meet the cost of these claims. However, MIBI argues that the Insurance Compensation Fund should pick up the bill, as it did previously in the cases of PMPA and Quinn Insurance.
Mr Mercieca said four full-time staff and a part-time employee are managing claims from Dublin. In addition, he has to pay fees for legal, accountancy and IT services. “There are costs,” he said.
Mr Mercieca said he has managed to establish the identities of the beneficial owners of Setanta but declined to reveal their names.
On whether he might pursue legal action against the former owners, he said: “I’m still considering that.”
Mr Mercieca said he would provide an update on the liquidation process to creditors of Setanta at a meeting in Malta, probably in June.
The team of advisers involved with Setanta Insurance Company Ltd in liquidation are Deloitte in both Ireland and Malta, Irish law firm Arthur Cox and Ganado Advocates in Malta.
According to Maltese law, no payments to claimants can be made until the total liabilities of the company have been established.
