Fianna Fáil spokesperson on Jobs, Enterprise and Innovation Dara Calleary says he’s extremely concerned following the collapse of Setanta Insurance, which has left 75,000 people without insurance and out of pocket.
“The collapse of Setanta Insurance is extremely worrying, for consumers. Tens of thousands of people who had signed up and paid over money have now been left without cover and with no recourse. This liquidation is the third catastrophe to hit the insurance industry in recent years, following the RSA bailout at the end of last year, and Quinn Insurance being put into administration back in 2010. All these financial fiascos have led to higher costs for the consumer, with larger premiums as well as Government insurance levies being forced on them”, commented Deputy Calleary.
“There needs to be a complete overhaul of the insurance regulation system here. How can a company be allowed to come into the market and trade, and then walk away, while placing a huge financial burden on its clients? There are now 75,000 people heading into a bank holiday weekend without any insurance cover for their car or van. It’s unacceptable that as it stands, these consumers are simply being told to pay again, and are left with absolutely no protection. It’s unclear how many have paid up front, but it’s safe to assume that consumers have paid over millions of euro to this company, which has now left them high and dry.
“This Government’s record on consumer protection has been lack lustre at best. It’s now establishing a new Consumer Protection Commission, which is legislated for under the Competition Bill. While I welcome the proposal, this new entity needs to have real teeth and strong powers to act in the best interests of consumers.”