Donegal motorists are likely to be hit with a once-off insurance premium hike – following a ruling made in the High Court yesterday.
The high profile case between Setanta and the Motor Insurance Bureau of Ireland was settled yesterday morning.
The decision taken by the High Court forces the MIBI to assume liabilities of over €90 million from the collapse of Setanta Insurance.
The Court of Appeal unanimously rejected an appeal by the MIBI against an earlier High Court decision that it must pay out on the 1,750 outstanding claims left in the wake of Setanta’s liquidation in 2014.
Industry sources estimate that this will lead to an average once-off premium hike of €50 on an average annual premium of €650 to 700 until the €90 million in liabilities has been met.
The industry is already in crisis – with many young Donegal motorists sending us details of their outrageous quotes for motor insurance in the past week.
Three different motorists in Donegal, all with full and clean driving licenses were quoted 8,000, 14,000 and 17,000 respectively for one year’s cover.
The latest hike has been met with yet more anger, and has led to calls for the Government to intervene and try to sort out an industry in need of a desperate overhaul.
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