The status of Danish-regulated Qudos Insurance needs to be clarified before the end of December in the interests of over 1,500 claimants and Irish insurance policyholders generally, according to Fianna Fáil Spokesperson on Finance Michael McGrath.
Deputy McGrath was speaking following a Topical Issue debate on the issue in the Dáil last evening.
Deputy McGrath commented, “Arising from last night’s debate, we learned that there are an estimated 1,544 open claims relating to Qudos Insurance – 155 of these are household claims and 1,389 relate to motor insurance. Based on our experience with the collapse of Setanta Insurance, the cost of settling these claims is likely to run to tens of millions of euro.
“If Qudos moves from solvent liquidation to bankruptcy after the end of 2018, the bill will end up at the door of the Irish Insurance Compensation Fund as a result of a change in Danish law introduced in May 2018. In other words, Irish policyholders will end up picking up the tab. In addition, given that a 65% cap applies to claims other than third party motor claims, some claimants will end up being left short.
“There are many questions that need to be answered. The failure of regulation in Denmark could end up being very costly for legitimate claimants and all policyholders here. I am concerned that Qudos will be put into bankruptcy in 2019, with Ireland then being saddled with the resulting bill.
“The Minister for Finance needs to become directly involved and should be contacting his counterpart in Denmark to ensure that due process is being properly followed. Following the failure of Setanta, Alpha, Enterprise and now Qudos, – all regulated in other EU member states – the Minister needs to raise at a European level the issue of the standard of insurance regulation across the European Union,” concluded McGrath.