Vol. 526 No. 3
162 Mr. Haughey asked the Tánaiste and Minister for Enterprise, Trade and Employment if a surcharge or levy is imposed on motor insurance premiums following the collapse of a company (details supplied); the plans she has to review this; and if she will make a statement on the matter. [26674/00]
The insurance compensation fund levy was introduced on 1 January 1984 following the collapse of PMPA in 1983. The levy ceased to apply from 1 January, 1993 as it was felt that sufficient funds had been collected to enable the successful completion of the administration of Primor plc – formerly known as PMPA Insurance plc.
Levies were paid by all non-life insurers at a rate of 2% of gross premium income until 31 December 1991. The rate was reduced to 1% from 1 January 1992 to 31 December 1992. Some £148 million was collected by way of the levy which is used to finance the administration of Primor plc. The administrator is continuing to run off claims incurred prior to that date under the name Primor plc.
The Government levy which at present applies to insurance policies is a general stamp duty, the proceeds of which go to the Exchequer and not to the insurance compensation fund. Any review of the current levy is, therefore, a matter for the Minister for Finance.
