The 2 per cent levy currently applied to most insurance policies is in fact an exchequer levy and, therefore, a matter for our colleague the Minister for Finance.
The insurance compensation fund levy ceased to apply from 1 January 1993 as, at that stage, it was felt that sufficient funds had been collected to enable the successful completion of the administration of Primor plc. The levy, originally introduced in 1984 following the collapse of PMPA, was paid by all non-life insurers at a rate of 2 per cent of gross premium income until 31 December 1991, reducing to 1 per cent between 1 January 1992 and 31 December 1992. As regards the sale of the PMPA, while the ongoing business and the name of PMPA were indeed sold in 1989, the administrator is continuing to run off claims incurred prior to that date under the name Primor plc.