Conor Lenihan
Question:76 Mr. C. Lenihan asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans, if any, she has to put the insurance ombudsman on a statutory footing rather than the current voluntary status. [7299/98]
Written Answers. - Insurance Ombudsman.
Conor Lenihan
Question:77 Mr. C. Lenihan asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans, if any, she has to give formal legislative powers to the insurance ombudsman to enable scrutiny of the insurance industry. [7300/98]
I propose to take Questions Nos. 76 and 77 together.
There are no plans to put the insurance ombudsman scheme on a statutory footing. As I indicated in reply to Dáil questions on 18 February 1998, the operation of the insurance ombudsman service, under the auspices of the insurance industry, has proved an outstanding success as an alternative dispute resolution mechanism. That success is due in no small measure to the dedication and expertise of the present ombudsman who has filled that position since the inception of the scheme in 1992 and who has developed the scope of the service to the mutual benefit of insurance consumers and providers.
To ensure the independence of the ombudsman, the operation of the service is divided into three component parts. The first is a board comprising executives who are elected from those insurers taking part in the scheme. The second is a council made up of nominees from within and outside the insurance industry. The council in the second part recruits and appoints the ombudsman, subject to the approval of the board in the first part. The third part is the office of the ombudsman, where policyholder disputes are referred and resolved. The member companies of the scheme are bound by the ombudsman's decisions.
As Minister, my primary concern is to ensure, in the interests of the consumers as policyholders, that whoever holds the office of ombudsman is enabled to discharge the responsibilities of that office in accordance with the terms of reference. I will be meeting members of the council at their invitation to discuss the existing arrangements for the operation of the scheme, in light of the experience gained over the past five years and to satisfy myself that these arrangements are being operated in a way which enables the ombudsman to independently and effectively discharge the functions of the office in accordance with the terms of reference.