asked the Minister for Industry and Commerce if, having regard to the payment made by the Exchequer towards the funds of the Equitable Insurance Company Limited in liquidation, he will introduce legislation to provide a speedier method of payment for claims and for the salaries of those employed by the company, which are preferential payments.
Ceisteanna—Questions. Oral Answers. - Equitable Insurance Company Limited.
54.
I do not propose to introduce legislation on the lines suggested.
Is the Minister aware that it is impossible in present circumstances for anybody who is involved in an accident in which more than one person has a claim to receive payment on that claim until all the claims have been disposed of?
I am aware that the liquidator has received legal advice to this effect.
Is the Minister also aware that the scheme was introduced by his predecessor into this House without any consultation with those who understood insurance work, and that, in consequence, there has been a complete jam in the payment of claims due by the liquidator of the Equitable Insurance Company?
I am not so aware. I am aware that there is an Insurance Market Committee set up to help the liquidator to deal with claims, set up with the authority of the High Court.
Is the Minister aware that that Market Committee complained on many occasions that they have been stultified in relation to their work by the restrictions imposed on them? Does the Minister consider it proper that where both a man and his wife were injured in an accident, and where the wife has died as a result of her injuries, and where the man who is in hospital has agreed the amount of this claim, he cannot get payment of it because the dead wife's claim has not been finalised and will, as the Minister has left the law at present, not get payment before he goes to his reward?
I am not aware of any restrictions operating in this matter other than those imposed by the normal procedure of the liquidation under the court, and the legal advice tendered to the liquidator. I do not think there are any delays which are due to the scheme introduced by my predecessor to deal with this matter.
The Minister should make further inquiries. Is he also aware, as he is unquestionably aware in his private capacity, that salaries on liquidation are of prior responsibility for payment? Is he further aware that the arrears of salaries due to the unfortunate staff of the Equitable Insurance Company have not even yet been paid to them?
I am so aware. I am also aware of the fact that they rank as preferential claims of right under the Insurance Fund. Until the claims on the Fund have been processed, it is not possible to deal with preferential claims. The Deputy is dealing with the claims being too slow, but the information at my disposal is that they are slow due to the procedures imposed not by the scheme introduced by my predecessor but by the operation of the winding up procedure by the court.
Question No. 55.
If you do not want further questions now, Sir, I give notice that I will raise the matter on the Adjournment.
I shall communicate with the Deputy.