Every motor insurance premium in Ireland could be facing an increase of over €40, as a result of a High Court ruling today.
The Court says that a fund run by existing insurers should be responsible for claims made against the collapsed Setanta Insurance.
The fund, run by the Motor Insurance Bureau of Ireland (MIBI), usually deals with claims worth around €60 million a year - and results in an extra cost of €30 per premium.
That fund usually only pays out in cases where someone takes a claim against an uninsured driver, in order to make sure that no other members of the public suffer as a result of their actions.
But today's ruling means the fund will also have to cover claims made against Setanta, which could be worth €90 million.
Setanta was officially registered in Malta, despite only ever trading in Ireland, and collapsed in May 2014.
The MIBI is expected to appeal the ruling given its impact on the rest of the sector.
Michael Horan of Insurance Ireland, which represents the Irish insurance industry, says the ruling could see premiums rise by €45 or more:
