Law Society welcomes ruling in MIBI insurance claims case

The Law Society of Ireland has welcomed a decision by the Court of Appeal to uphold a judgment holding the Motor Insurers Bureau of Ireland (MIBI) liable for outstanding claims following the collapse of an insurance firm.

The MIBI appealed an earlier High Court ruling which ordered it to pay out on claims against persons insured with Setanta Insurance Company Limited at the time of its entry into liquidation in April 2014.

The case was initially brought by the Accountant of the Courts of Justice until the former President of the High Court, Mr Justice Nicholas Kearns, directed that the Law Society of Ireland should act as the claimant.

The Law Society argued that the MIBI was potentially liable to pay court awards and settlements in full in these cases under the terms of the MIBI’s agreement with the State.

The MIBI’s appeal was rejected by President of the Court of Appeal Mr Justice Sean Ryan, Ms Justice Mary Finlay Geoghegan and Mr Justice Gerard Hogan.

The Law Society said the arguments it made in the public interest had now been upheld by the High Court and the Court of Appeal.

Ken Murphy, director general of the Law Society, said: “A route to justice has been provided for people who have suffered injury and loss through the fault of drivers insured with an insurance company that has gone into liquidation.

“The insurance industry had argued that the MIBI agreement only extended protection to the victims of uninsured and untraced drivers. Today’s decision confirms that the victims of drivers whose insurer becomes insolvent are also potentially protected, as had been contended by the Law Society.

“The Court of Appeal has today confirmed both what the insurance industry’s agreement with the State requires and what simple justice demands.

“Over the last two years we have heard many first-hand accounts of claimants, in Setanta cases, who have suffered life-changing injury and loss. It is good news for these accident victims, and for justice itself, that a route to securing their rights has now been opened.”