Charles Flanagan
Question:118 Mr. Flanagan asked the Tánaiste and Minister for Enterprise, Trade and Employment the amount collected from the 2% insurance levy in each year since its inception. [5984/02]
Written Answers. - Insurance Levies.
The Insurance Compensation Fund levy was introduced by the Government 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.
Until December 1991 levies were paid by all non-life insurers at a rate of 2% of gross premium income. The rate was reduced to 1% from 1 January 1992 to 31 December 1992. Some £148 million was collected by way of the levy. This was 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. Therefore, any information in relation to this levy is a matter for the Minister for Finance.