Trevor Sargent
Question:165 Mr. Sargent asked the Tánaiste and Minister for Enterprise, Trade and Employment the action which has been taken to assist motorcyclists following the liquidation of a company (details supplied). [28836/01]
Written Answers. - Company Liquidation.
Independent Insurance Company Limited – IICL – was a UK authorised insurer. Accordingly, responsibility for ensuring that IICL could meet claims from its policyholders lay with the UK authorities, who were responsible for the financial supervision of the company.
Following the commencement of the liquidation process in the UK, our first priority was to ensure that alternative cover was available. Irish insurers indicated a willingness to accommodate the policyholders affected. The broker who had placed the business with Independent put alternative arrangements in place.
Clarification obtained through the UK authorities indicates that private policyholders, including motorcyclists, are, in principle, protected under the UK Policyholder Protection Act subject to the policyholders meeting all of the other requirements of the UK Act. That protection will be limited to 90%, including return of unexpired premiums of up to 90%, provided policies confer rights to a return of premium, on cancellation.
It is understood from the Motor Insurers Bureau of Ireland that, in the case of third party claims arising under policies covering compulsory third party insurance, application may be made to the bureau for the recovery of insurance losses not otherwise recovered as a result of the failure of Independent Insurance.