The Motor Insurance Bureau of Ireland (Mibi) has signalled its intention to proceed with a Supreme Court appeal against a decision that it must pay out on the 1,750 outstanding claims left in the wake of Setanta Insurance's collapse in 2014.
The case arises out of a High Court judgement which found that the Mibi was liable for some €90 million in claims against the Maltese registered Setanta following its liquidation.
The bureau believes the liabilities should pass to the State’s insurance compensation fund, which happened following the failure of PMPA and Quinn Insurance
It has warned that Irish motorists are likely to face an average once-off insurance premium hike of €50 if the ruling is not overturned.
Earlier this month the Supreme Court agreed to hear the appeal, describing the issue involved as “a very serious one”. The Mibi yesterday lodged its formal intention of notice to proceed with the court.
“As the implications of this case will have a significant impact on motor insurance policyholders, the motor insurance market as well as the ongoing operations of the Mibi, it deserves the judgement of the highest court in the land,” chief executive Patrick O’Brien said
“Not only is this case adjudicating on a significant specific liability - it is also establishing a precedent which could have ongoing implications for the entire motor insurance sector in Ireland,” he said.
