Setanta Insurance policies to be cancelled by liquidator

The Central Bank has advised that all polices issued by Setanta Insurance, the Malta-registered company that has gone into liquidation, are to be cancelled.

Setanta collapsed on April 16th, leaving 75,000 motor policyholders in Ireland with no cover. The Malta Financial Services Authority has since appointed Paul Mercieca as liquidator to to the company.

Mr Merciera, who is responsible for the administration of Setanta's assets and liabilities, has confirmed to the Central Bank his intention to cancel all policies issued by Setanta by way of a 7 or 10 day notice. The cancellation notices are to be sent to policyholders over the coming week.

Notices on the cancellation of policies are also to be published in national newspapers.

The Central Bank said it has been in contact with over 200 brokers who were offering policies from Setanta Insurance to ask them to notify customers of the policy cancellations and advise them to make alternative motor insurance arrangements.

Setanta, which had offices in Blanchardstown in west Dublin, had been selling mainly commercial motor insurance through brokers and was known as a low-cost operator.

Minister for Finance Michael Noonan said last week that the Motor Insurance Bureau of Ireland (MIBI), a non-profit organisation established by the Government and companies underwriting motor insurance, will accept all third-party claims against policies written by Setanta.