Quinn: Law Society
raises concerns in Irish High Court for 500-plus
solicitors
The Law Society has received
sufficient assurances from the Irish Government and the joint
administrators of Quinn Insurance Limited (Quinn) that the
interests of the 500-plus solicitors who have run-off professional
indemnity insurance (PII) cover with Quinn will not be affected by
the transfer of some of its insurance business to Liberty Mutual
Direct Insurance Company Limited.
In the Irish High Court last
week, the Law Society sought to ensure that the transfer would not
materially prejudice the interests of its members.
The Court, which approved the
transfer of some of Quinn's insurance business to Liberty, also
approved a payment out of the Irish Insurance Compensation Fund
(ICF) of €738 million.
Part of that sum is for the
joint administrators of Quinn to apply to the Court for a drawdown
from time to time to meet any claims that arise under the policies
remaining in Quinn, including those of Law Society members. The
Court is to hand down its written judgment on 14
October.
The Society has also been
advised that new legislative provisions in Ireland claims to the
ICF from 'risks outside of the State' would not apply, and
that the existing rules which afford protection to solicitors in
England & Wales would apply to the Quinn
administration.
Law Society chief executive
Desmond Hudson said: “The assurances we have received from
the joint administrators is good news for our members and helps
alleviate many concerns the 500-plus members with Quinn run-off
policies had about the partial transfer of Quinn's insurance
business to Liberty.
“We have also written to
all of our members and former members who are likely to be
affected, informing them of the outcome of the hearing and we will
continue to monitor the administration of Quinn to ensure their
interests are protected and take further action if
necessary.”
Ends
Notes to editors:
Changes to the Insurance
Compensation Fund by the Insurance (Amendment) Act 2011 excludes
'risks outside of Ireland' from making future claims. There
is also a saving provision in Act that provides for the
jurisdiction of the Irish Compensation Fund to remain unaltered
over the Quinn administration.
Contact: Steve Rudaini, The Law
Society
+44 (0)20 7316
5624