Motor insurance premiums could be on the rise again, following a court ruling today.

The Motor Insurance Bureau of Ireland appealed a High Court ruling which said the group had to assume responsibility for €90m worth of liabilities from the collapse of Setanta Insurance last year.

However, the Court of Appeal rejected it.

There are now concerns that motorists will be hit with higher premiums as insurers pass the costs to their customers.

Read: Read More: Insurance costs remain biggest obstacle to car ownership

The CEO of the Motor Insurers Bureau of Ireland (MIBI), Pat O'Brien, confirmed that it is likely the cost will be passed onto consumers.

“That decision is going to have major implications for the MIBI, the motor Insurance industry in Ireland, and ultimately for motorists, as the decision is going to pass on the failure of Setanta Insurance to the MIBI and ultimately to motorists,” he said.

He added: "We will be seeking urgent discussions with the incoming Government to clarify the respective roles of the MIBI and the Insurance Compensation Fund, in the eventuality of further insolvencies in the insurance sector.”

"The judgement appears to establish a precedent, whereby, in the event of a major insurer failing, the MIBI could be exposed to liabilities of hundreds of millions of euro.

"Such exposure calls into question, whether the long established MIBI model is sustainable and will be able to continue to operate in the future.

"Once a new Government is in place, we will be seeking to reinforce our position that the 2009 MIBI Agreement and related insurance legislation should be amended to reflect its original intention.

"Every motor insurer operating in Ireland makes a contribution towards the €60m in annual claims provided by the MIBI under our agreement with the government.

"This expense is reflected in the premiums paid by all insured motorists.

"The estimated expense of the Setanta claims will exceed €90m.

"If the MIBI is required to provide for these claims, which amount to an additional 150% of our annual claims’ budget, this will have significant implications for insurers and can only further exacerbate the cost of premiums paid by insured motorists.”

"As well as taking into account the wider issues thrown up by this case, the court’s judgement will need to be carefully studied by the MIBI and all our member companies with a view to how we proceed from here.

"All available avenues of further action will be considered, from further appeals to implementing a variety of strategies to mitigate the cost to the MIBI."