More than 500 of the Irish solicitor firms who have run off professional indemnity insurance with Quinn Insurance Ltd will not be affected by transfers of the former commercial insurance provider’s business to new owners, according to both Quinn’s joint administrators and the Irish Government.
The Law Society spoke before the Irish High Court recently in an attempt to ensure that the business insurance transfer to Liberty Mutual Direct insurance Company Ltd would not cause any material prejudice to its members’ interests. A portion of the transfer has already been approved by the Court, who also approved a €738 million payment out of the Irish Insurance Compensation Fund, with some of that sum going towards Quinn’s joint administrators in order for them to apply for a drawdown from the Court.
The Court will be handing down its final written judgment this coming week. It has also warned the Law Society that any ICF claims made from risks outside of Ireland would no longer apply, though the currently existing rules that extend protection to English and Welsh solicitors would be applicable under the Quinn administration.
Desmond Hudson, chief executive for the Law Society, said that it was ‘good news’ for its members to receive the assurances from Quinn’s joint administrators. Many of the Law Society’s concerns with the run-off policies of Quinn have also been alleviated, Mr Hudson added, stating that all Law Society members and former members who may be affected have been written to in order to inform them of the hearing’s outcome.
The Law Society will continue monitoring Quinn’s administration to make sure its interests are protected, said the chief executive.