Dáil Éireann debate -
Tuesday, 4 Feb 1969

Vol. 238 No. 2

Written Answers. - Insurance Company Debts.

185.

Mr. Sweetman

asked the Minister for Industry and Commerce (a) the total amount of the debts due by the Equitable Insurance Company Limited as proved in the liquidation, (b) the amount paid by the State towards such debts and liquidation, (c) the amount paid by the other insurance companies under their contribution arrangement towards such debts and liquidation, (d) the names of the directors at the date of liquidation, (e) the names of any shareholders who held 5,000 shares or more at that date, (f) the date on which a licence was granted to the company under the Insurance Acts, (g) the names of the directors at that date, (h) whether the grant of the licence was a matter of discretion or of right.

186.

Mr. Sweetman

asked the Minister for Industry and Commerce if he will state in relation to the Equitable Insurance Company (I) the date on which the investment in Tower Insurance Company Limited first was included in the accounts of the company, the amount at which it was so included and the amount at which it was so included in each year thereafter, (II) the date on which he first became aware that the alleged assets of the company included an investment in Tower Insurance Company Limited, (III) what amount has been realised by the liquidator for such Tower Insurance Company asset and the amount that was included for such asset in the last balance sheet of the company, and (IV) whether the directors of the company signed a certificate under the Insurance Acts that they had examined the investments in each year that the Tower Insurance Company asset appeared; and if he is satisfied that such certificate was validly so signed having regard to the amount realised by such investment.

Minister for Industry and Commerce (Mr. Colley)

The answers to questions Nos. 185 and 186 are as follows:—

Equitable Insurance Company Limited (in Liquidation).

(a) Particulars of the total amount of debts due by the Equitable Insurance Company Limited are not available as the liquidation is not yet complete.

(b) The amount paid by the Minister for Finance to the Insurance Compensation Fund, in accordance with Section 4 of the Insurance Act, 1964, was £30,000.

(c) The total amount paid to-date by licensed insurers, under Section 6 of the Insurance Act, 1964, is £170,362.

(d), (e) This information can be obtained by reference to the records in the Companies Registration Office.

(f) The assurance licence was granted to the Company on 27th March, 1948.

(g) This information can be obtained by reference to the records in the Companies Registration Office.

(h) As the company had complied with the requirements of Section 12 (ii) (b) of the Insurance Act, 1936, the Minister was obliged, under the provisions of the Section to grant the licence.

(1) The company was under no statutory obligation to set out in its annual returns the names of subsidiary companies or companies in which it held shares. Consequently, this information is not available.

(II) In view of the position as outlined at (I), there was no information as to the identity of the investments of the Equitable available until the liquidation of the company.

(III) I have no information as to the amount realised by the liquidator for the Tower Insurance Company asset nor am I entitled to require such information of the liquidator.

(IV) The Directors were bound under the Insurance Acts to certify, inter alia, that the values of all the assets set forth in the balance sheet had been ascertained and reviewed as at the date of the balance sheet and were shown therein at amounts which in their belief did not exceed in the aggregate the realisable or market value of such assets after taking into account any investment reserve fund. A certificate to this effect signed by the Directors, was supplied with the balance sheet for each year except for year ended 30th June, 1962 which was the last year in respect of which the company lodged accounts. From the information available to me, I could not say whether or not the certificates were validly given.