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.”
Source : Law Society Press Release
