The Law Society has this week 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 this 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 and 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.'