Updated 3.18pm
SHAREHOLDERS AT SETANTA Insurance Limited have decided to wind up the company, saying it is unable to confirm whether customer claims will be met.
The Central Bank confirmed the move today but pointed out that the Malteste firm’s financial position is not supervised by the bank as it is subject to prudential supervision by the Maltese Financial Services Authority.
The authority notified the bank yesterday of the shareholders’ decision and the process will take place in Malta.
On its website, the vehicle insurance company said it has reached a conclusion that a “solvent run-off is no longer possible”.
The Central Bank will require Setanta to write to all policyholders to advise them of the situation and its implications for them.
“Setanta is not in a position to confirm that claims will be met in full since any and all claims will be subject to the relevant liquidation process,” the bank said in a statement today. “Policyholders should therefore make arrangements for alternative cover without delay.”
Commenting on the news today, Managing Director of insuremyvan.ie Jonathan Hehir said thousands of small business owners appear now to be “stranded without cover”.
“A couple of months ago when Setanta first ran into difficulty it assured policyholders that claims will be paid – however now it seems that those with outstanding claims will be left in a very precarious predicament,” he added.
Customers have already been expressing their concern with one business saying they have had to pull their van in because they don’t know if they are covered:
First published 13.44
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