Irish policyholders of Independent Insurance who are owed £25m have been told they are to receive compensation from the UK's Policyholder Protection Board.
The PPB has agreed to extend the offer of compensation payouts to more than 9,000 Independent policyholders in Ireland.
But it is refusing to compensate the collapsed insurer's policyholders in Spain.
The Irish Brokers' Association estimates there are up to 1,100 claimants in Ireland waiting to be paid, although not all will be eligible for compensation from the PPB because some have employers' liability cover, which is not a mandatory class of insurance in Ireland.
The PPB is now almost certain to issue a levy on its member UK insurers of up to £200m say analysts.
