All Setanta Insurance policies to be cancelled within ten daysFriday 09 May 2014 16.57
About 40,000 vehicle owners who are customers of Setanta Insurance will have their policies cancelled in less than three weeks.
The policy holders, most of whom have commercial vehicles, will be forced to buy new insurance cover from another company.
The Central Bank has said that the liquidator of Setanta has announced his intention to cancel all policies issued by the insurance company through a seven or 10 day day cancellation notice.
The cancellation notices will be sent to all policyholders within the next seven days and notices have also been placed in the national media.
Setanta Insurance, which was licenced by the Malta Financial Services Authority and sold car and van insurance in Ireland, collapsed last month. It had up to 75,000 policy holders here.
It had been in the process of winding up its business here since January, but decided that a solvent run-off of the business was no longer viable and, at an EGM in April, decided to surrender its business licence..
The liquidator has confirmed that all policy holders, that have not already done so, should arrange alternative cover without delay as claims are unlikely to be paid in full. Once the notice period has expired, all policies will be cancelled, the liquidator added.
The Central Bank said talks with the Malta Financial Services Authority in relation to Setanta Insurance have been continuing.
It said it has told over 230 brokers who had been selling policies from the company to inform policyholders of the urgency to make alternative motor insurance arrangements.
"We have also required all brokers to ensure they provide assistance to any policyholder and provide them with all relevant information and documentation as required," the Central Bank said.
The Central Bank has a Q&A with information for Setanta Insurance policyholders.