Vol. 542 No. 3
55 Mr. Kenny asked the Tánaiste and Minister for Enterprise, Trade and Employment the amount collected under the 2% levy system for insurance; the amount in the fund at present; the purpose for which this is to be used; and if she will make a statement on the matter. [24392/01]
The insurance compensation fund levy was introduced on 1 January 1984 following the collapse of PMPA in 1983.
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 levy ceased to apply from 1 January 1993. The administrator is continuing to run off claims incurred prior to that date under the name Primor plc. Approximately £18 million remains in the fund.
The insurance compensation fund is maintained and administered by the accountant of the High Court, acting under the control of the president of the High Court. Moneys in the fund may only be drawn down in the event of the liquidation of an Irish authorised non-life insurance company, pursuant to section 31 of the Insurance Act, 1989.
