Setanta has warned that it may not be able to pay out claims after a decision was made to dissolve the business. Customers have now effectively been left without any insurance cover and any claims submitted to Setanta are very unlikely to be paid. Mark Fielding, CEO of ISME said: “This is nightmare stuff. I’m just exasperated and quite upset. We need to look at the whole regulation area. If a business if carrying out business in Ireland its up to the regulator to keep an eye on it. It doesn’t matter where the business got its licence".
Mr Fielding added that the collapse of Setanta would affect several hundred of their members. "You have guys with four, five and seven vans on the road who now have to find another six months insurance". Dara Calleary, Fianna Fail spokesperson on jobs, is demanding a complete overhaul of the regulatory system.
“How can a company be allowed come into the market and trade and then walk away while placing a huge financial burden on its clients?" he asked.
ISME sent a letter to Minister Richard Bruton asking him to ensure that those who now had to find alternative insurance would not be charged excessively. Chairman of the Consumers Association, Michael Kilcoyne said that everyone with insurance will end up paying for his debacle."One way or another, we will all end up paying for this. The levy on every general insurance policy will have to be increased".