Related Stories

• Putting the time in for R&D Credit Rewards
  
  
• Top award for Reidy’s SuperValu, Mitchelstown
  
  
• Ballyboy House is a retreat into the heart of nature
  
  
• Limerick SMEs receive boost with launch of Enterprise Support Scheme 2014
  
  
• Prendergast MEP welcomes potential SSIA style schemes for SME’s
  
  
• Sherlock welcomes successive drop in Live Register for North Cork area
  
  
• Double win for Maxol Mitchelstown
  
  
• MACE stores in Mitchelstown, Fermoy and Glanmire honoured
  
  
• €30m Mitchelstown investment welcomed by Cork senator
  
  
• Araglin lady’s stitches to take you back in time
  
  
• Minister asked to support ‘curved cabs’ for new lorries
  
  
• Purchase of hotel at Cork Airport
  
  

‘People should be cautious when purchasing car insurance and not take short cuts’ – Paul Kavanagh, MD McCarthy Insurance Group. Photo: Gerard McCarthy

On Holy Thursday, news broke that Setanta Insurance were now in liquidation, causing havoc for thousands of policy holders across the country, but Paul Kavanagh, MD of McCarthy Insurance Group explains the Setanta Insurance collapse here and how McCarthy's clients in the Avondhu region have nothing to worry about.

Setanta were known in the market for cheap premiums and taking on risks that otherwise would be rated higher due to their use, make up, drivers or modification.

The Central Bank of Ireland advised clients that Setanta may not be in a position to meet any or all of its claims should they arise and cover should be arranged elsewhere. Claims will be dealt with in the relevant Maltese Liquidation process.

Paul told The Avondhu that it was further announced that as Setanta is now in the process of liquidation, it is not in a position to guarantee pro-rata returns of premiums that may be due. Funds held by Setanta are now in the hands of the Liquidator to be distributed in accordance with Maltese law.

It is therefore clear that the Insurance Compensation Fund will not be used to compensate Setanta policyholders for their loss of premium.
 
On Monday, May 19, registered letters were sent to commercial vehicle policy holders giving a 10 day notice of expiry period as is required by the policy contract. Standard post letters were sent to private car policy holders at their last known address giving a seven day notice of expiry as is required by the policy document.

Paul explained that for people who were Setanta clients and have already made alternative arrangements, they can ignore these letters.

"If you are an MIG client then thankfully you will not be receiving any of these letters, as we did not deal with Setanta and only place business with recognised Insurers with a track record and solid reserves," he added. 

The MD also added that people should be cautious when purchasing car insurance and not take short cuts.

"I know motor insurance can be a grudge purchase, as it is compulsory by law, but do not take short cuts, do not misrepresent the facts to gain a cheaper premium," he stressed.

Anyone who got a letter should contact their local MIG branch immediately to arrange a new insurance policy, but Paul said that Setanta policy holders will not get their premiums back, as the Maltese liquidator has legal authority over all Setanta funds, so it is unlikely that policy holders will get a cent, so if clients cannot afford a new policy, they should ask MIG to put them with a solid company with their own in-house finances or seek a loan from a bank or Credit Union.

If drivers ignore the letter and continue to drive, they will not be insured and under the Road Traffic Act 1961, this can lead to a car being impounded by Gardai or a conviction for driving without insurance. 

Paul also advised customers to go to people they know and trust for over 60 years in the Avondhu region and he assured customers that McCarthy Insurance Group will give them proper advice, so that they can sleep easy at night.        

blog comments powered by Disqus