Dáil Éireann debate -
Thursday, 13 Jun 2024

Vol. 1055 No. 5

Motor Insurance Insolvency Compensation Bill 2024: Second Stage

Minister of State at the Department of Enterprise, Trade and Employment (Deputy Neale Richmond)

I move: "That the Bill be now read a Second Time".

I welcome the opportunity to address Dáil Éireann on the Motor Insurance Insolvency Compensation Bill 2024, which was published on Friday, 30 May. As Minister of State with special responsibility for insurance, I am bringing forward this Bill to transpose Articles 10a and 25a of the motor insurance directive, as inserted by the sixth motor insurance directive. The purpose of these articles is to provide protections and allow for timely compensation for Irish motor insurance policyholders in the event of an insurer becoming insolvent.

The Bill builds upon the existing insurance compensation framework currently in place within the State, and complements the Government’s real progress and firm commitment in implementing insurance reform. This Bill will further protect motor insurance policyholders, where an insurer becomes insolvent. We all will be aware of situations where Irish motorists have been impacted by failures of firms based in other jurisdictions. This Bill will increase the consumer rights of policyholders because it will ensure that if an insurance company is based in another EU member state, as has been the case in Ireland, then it is up to that member state to pay if the insurer becomes insolvent.

As Deputies will be aware, through the existing insurance compensation fund framework, Ireland already has a comprehensive insurance compensation architecture in place to compensate policyholders and injured parties in the event of an insurance failure. It is currently in play to address failures of firms we will all be aware of such as Quinn and Setanta. This fund is primarily designed to facilitate payments to policyholders on a host basis, that is, in respect of insurance risks in the State where a non-life insurer goes into liquidation.

Articles 10a and 25a of the motor insurance directive build upon our existing framework by moving the European Union towards a harmonised compensation framework for motor insurance by compelling each member state to establish a compensation body underpinned by a cross-border centralised function to compensate policyholders and injured parties in a timely manner.

In summary, this Bill represents a wholly positive development for consumers, making it easier to seek compensation following a motor insurance failure, either by firms regulated here or in other EU member states, as injured parties will now be entitled to efficient compensation from the newly established motor compensation body.

By way of background to the Bill, the European Union consolidated and codified four motor insurance directives into one single motor insurance directive in 2009 setting out minimum insurance requirements for all EU member states to follow. This in turn facilitates travel by EU citizens across our territories and boosts tourism, business and other cross-border activity within the EU. In 2019, the European Parliament and the European Council agreed on a revised version of this directive, referred to as the sixth motor insurance directive. The Department of Finance is specifically responsible for transposing Articles 10a and 25a of this directive as they relate to situations of motor insurance insolvency. These provisions essentially provide a pan-European framework for motor insurance insolvency compensation. Naturally, this has implications for countries such as Ireland which have existing insurance compensation fund frameworks

Some of the key elements of the directive include: first, the establishment of motor compensation bodies in each member state; second, a shift from a host to a home-based system, meaning that, crucially, the cost of such claims would be met by the home country of the insurer and thus Irish customers would not be footing the bill for insolvencies outside of Ireland and; third, the imposition of a hard deadline for the assessment and payment of compensation of claims of policyholders and injured parties relating to an insolvent motor insurer. Until now, there have been no harmonised EU rules to ensure that injured parties are swiftly compensated in such situations involving motor insurance firm insolvency.

Turning to the detail, I propose to give an overview of the Bill and each of its five Parts. Part 1 contains standard legislative provisions that cover the Short Title to the Bill and its commencement, as well as some relevant definitions and some standard provisions regarding regulations and orders made pursuant to the Bill and expenses incurred by the Minister for Finance in the administration of the Act.

In accordance with the directive, Part 2 will establish in legislation a motor compensation body with responsibility for dealing with claims arising from motor vehicle accidents where the relevant insurance undertaking is insolvent. Accordingly, Part 2 formally appoints the Motor Insurers Bureau of Ireland to this role, which follows on from a letter of nomination that was sent to the EU Commission in June 2023. Part 2 sets out: first, how the compensation body will operate, second, how it will engage and co-operate with interested parties and other stakeholders; and, third, how the body will have sufficient funds for the purposes of providing compensation to claimants.

Following its authorisation as the compensation body in Ireland once this Bill is enacted, the Motor Insurers Bureau of Ireland will be empowered to manage claims directly and make payments in a timely manner. In order to achieve this, the Bill will provide the Motor Insurers Bureau of Ireland with the full range of functionality required to manage claims, administer a fund, make payments and engage with other EU bodies.

The Department of Finance carried out a detailed assessment with the various stakeholders within the insurance compensation fund framework. It was ultimately determined that the well-established Motor Insurers Bureau of Ireland is the most suitable agency to be appointed to the role of national compensation body in Ireland. The role also complements the Motor Insurers Bureau of Ireland's existing role of compensating victims of road traffic accidents caused by uninsured and unidentified vehicles, one which it has fulfilled since 1955.

In addition, the State has considerable experience of working collaboratively with the Motor Insurers Bureau of Ireland in the context of the motor insurance insolvency compensation fund. This is a motor insurance compensation fund it has administered since the failure of Setanta Insurance. Accordingly, we see the nomination of the Motor Insurers Bureau of Ireland as a positive evolution of its role in protecting policyholders.

I will now turn to how this will operate in a cross-border context. Where the relevant claim relates to an insurance undertaking that is authorised in another member state, the Irish compensation body will be reimbursed for the relevant compensation by its counterpart body in the home member state of the insolvent firm. This is a further protection for Irish policyholders, as they will no longer be ultimately liable for the costs of insolvent insurance companies regulated outside of Ireland.

At EU level, the governance and reimbursement mechanisms between the various EU compensation bodies will be governed by either an agreement of the Council of Bureaux, of which the Motor Insurers Bureau of Ireland is a member, or by means of a delegated Act, which we understand is being considered by the EU Commission.

Part 2 also sets out in detail how a claim can be presented to and processed by the compensation body. The compensation body will be empowered under Part 2 to collect the relevant information from both policyholders and injured parties, and then utilise this material while co-operating with other insurance compensation fund stakeholders to ensure the assessment of claims and payment of compensation occurs in an efficient and timely manner.

In accordance with the requirements of the directive, the Bill sets out the framework for the presentation and processing of motor vehicle liability claims to the compensation body, including that claimants should receive payment of compensation within three months from the date their offer of compensation is accepted. This three-month time limit is an important pro-consumer development and ensures timely payment to claimants. In order to achieve this, the Bill will enable the compensation body to assess and pay compensation to injured parties without recourse to High Court approval, as is currently the position under the Insurance Act 1964.

Section 9, together with the amendments to the 1964 Act under Part 5, facilitates a comprehensive reform and streamlining of the existing legal framework relating to the insurance compensation fund into a one-stop shop for motor insurance insolvency claims so that claimants will go directly to the Motor Insurers Bureau of Ireland, which will handle these claims expeditiously, rather than dealing with different liquidators and will also ensure that customers receive their compensation within three months of the offer.

Significantly, the Bill preserves the existing broad spectrum of compensation that is available domestically under the 1964 Act for claims relating to motor vehicle liability by allowing the compensation body to also handle, for example, claims on comprehensive motor policies, which predominate the Irish market, rather than the minimum bar of third-party cover as is the requirement under the directive. As such, we have tailored our approach under this Bill to meet the specificities of the Irish motor insurance market. This has taken some time but I think it is an approach that we can all support.

Part 3 sets out the comprehensive governance and oversight processes that will be put in place relating to the processing and auditing of claims payments under the legislation. This, in part, reflects the reform proposed under this Bill where the role of the High Court in approving payments has been changed to the compensation body now fulfilling this in a more timely and effective manner. In addition to the necessary internal governance processes of the compensation body, and the internal and external audit processes for the compensation body itself, Part 3 also provides that an audit will be carried out by the State Claims Agency on a sample of claims on an annual basis and that a further ex ante check will be carried out by the State Claims Agency before the payment is made on certain claims above a specific threshold, which will be set by way of order of the Minister for Finance. Part 3 further provides that the timeframes and operational practicalities of these ex ante and ex post audits will be agreed in a memorandum of understanding between the compensation body and the State Claims Agency, which will, in turn, be subject to the review and consent of the Minister for Finance.

It is worth noting that the Bill also provides that a statement of the amounts of compensation paid will be included in a report to be submitted to the Minister and laid before the Oireachtas and will be included in the report submitted by the Central Bank of Ireland to the Comptroller and Auditor General for possible audit.

With respect to the governance and oversight processes under the Bill, Part 3 also envisages that a strategic review of the governance and oversight framework will be carried out after the first insolvency event. We feel this to be in line with best practice and it will allow any learnings from the implementation of the process to be incorporated into its operations.

I accordance with the directive, Part 3 also ensures that sufficient funds will be available to compensate injured parties when compensation payments are due by enabling the Minister for Finance to advance funds to the insurance compensation fund.

I will turn now to Part 4, which contains a number of provisions that facilitate the disclosure and processing of personal data by the compensation body and other stakeholders in accordance with the general data protection regulation, GDPR, and the Data Protection Acts. This is to ensure that the relevant stakeholders can co-operate and share information as required under the motor insurance directive in a manner that is fully compliant with the relevant provisions of the GDPR and provides safeguards for the processing and handling of personal data. This Part also enables the Minister for Finance to prescribe specific measures for the processing of data under the Bill, by regulation if necessary. At this point, it is worth noting that the Data Protection Commissioner was consulted during the preparation of this Bill in accordance with the GDPR and the Data Protection Acts.

Part 5 contains a number of provisions that amend the existing legislative framework governing the Insurance Compensation Fund under the 1964 Act. Specifically, Part 5 moves the current framework from a host-based to a home-based system for motor third-party liability risks. In simple terms, this now means that if an insurance company is based in another EU member state and selling motor insurance into the Irish market, it will ultimately fall on that member state to pay if the insurer becomes insolvent. The Irish compensation framework will not have to foot the bill in such instances. Operationally, it was necessary to amend the 1964 Act to ensure that such insurance business is carved out of the insurance compensation fund framework under the 1964 Act.

On the other hand, the directive requires that Irish authorised insurers exporting motor insurance policies across the EU are now within scope of the Irish insurance compensation fund framework. This means that if an Irish-authorised motor insurer were to become insolvent, the compensation framework will have to cover motor vehicle liability risks exported to other EU and EEA member states. In light of this, Part 5 authorises the Minister for Finance to introduce regulations to establish a funding mechanism to require such Irish-authorised insurers to contribute towards the cost of insolvency compensation in respect of their cross-border business. Such regulations may empower the Central Bank of Ireland to establish a sub-fund of the insurance compensation fund, into which contributions collected under this regulation will be paid.

Accordingly, any such financial contributions will relate to motor third-party liability insurance carried on by Irish authorised insurers in other member states and, as such, should not impact Irish motorists. It is planned that these regulations will be developed in due course following the necessary consultation and consideration of the relevant issues.

Part 5 makes a number of amendments to the 1964 Act to ensure the compensation body has recourse to the insurance compensation fund to cover the costs and expenses of the compensation body while performing its duties under the Bill and to provide it with the funds it needs to compensate injured parties when such payments are due. As the fund is administered by the Central Bank of Ireland, the Bill makes further amendments to the 1964 Act to facilitate such payments by the Central Bank of Ireland to the motor compensation body. The 1964 Act is also amended to allow the Minister for Finance to advance funds to the insurance compensation fund to enable compensation payments out of the insurance compensation fund where there is an insufficiency of funds to make payments under this Bill.

In summary, there are two potential costs that arise from the transposition of the directive: the establishment and operation of the new compensation body, and potential increased exposure to the insurance compensation fund if an insurer authorised by the Central Bank of Ireland were to become insolvent. Although there is the potential for an increase in exposure to Irish-authorised insurers exporting insurance to other EEA member states under the new arrangements, this needs to be balanced against the reduced exposure to insurers from other EEA member states, which, as I mentioned earlier, will now be covered by what is called their home state on a prospective basis rather than by the insurance compensation fund. That is, costs arising from insolvent insurance companies regulated in other member states will ultimately be borne by that member state rather than Ireland.

Overall, based on the most recent gross written premium data assessed by the Central Bank relating to 2023, we currently expect that this should in fact result in an overall slight decrease in exposure for the insurance compensation fund. However, it is worth adding that given the dynamic nature of the significant international insurance market based here, it is possible that firm-specific developments could affect the exposure the Irish compensation fund is potentially subject to.

In terms of costs and expenses, the total set-up costs are expected to be of the order of approximately €1.2 million in 2024 and approximately €300,000 in 2025, which will be pre-funded through existing moneys collected for the insurance compensation fund. It is expected that recurrent costs should be limited to approximately €70,000 per annum thereafter, albeit with potential increases in the case of an insolvency event, as would be expected. Further technical amendments are made to the NTMA Act, the VAT Consolidation Act and the 2015 insurance and reinsurance regulation to align these pieces of legislation with the Bill and the directive.

In terms of engagement with the Oireachtas thus far, further to a request from the Minister for Finance in December 2023, the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach decided to waive pre-legislative scrutiny of the general scheme of the Bill. I thank the committee for its support and for facilitating timely consideration of the provisions within the Bill. I welcome the pre-legislative scrutiny waiver, which helps expedite the transposition of the directive, and officials from the Department are available to provide further detailed briefing on the Bill to the committee on the Third Stage of the legislative process.

I note the constructive engagement from stakeholders throughout the consideration and drafting of the Bill to date. Officials from the Department of Finance established and chaired a working group on the insolvency compensation element of the directive. The relevant stakeholders, all of whom currently have a role within the current insurance insolvency and claims framework, such as the Central Bank of Ireland, the Department of Transport, the Motor Insurers’ Bureau of Ireland, the Revenue Commissioners, the State Claims Agency, the Courts Service and the Department of Enterprise, Trade and Employment, have engaged in collaborative discussions on the optimal methods to transpose the directive and improve the compensation process for injured parties. This represents a complex web of differing functions, responsibilities and relationships and, as such, these members provided practical insights as to operational issues that were considered extensively by the working group in preparing this Bill. The Department will continue to engage with stakeholders as the Bill progresses through the Oireachtas.

I would like to inform the House that the European Central Bank was also consulted on the Bill given the Central Bank of Ireland’s role in the administration of the insurance compensation fund. Following careful review of the Bill, the ECB confirmed that the legislation does not impair the Central Bank of Ireland’s independence or breach the monetary financing prohibition, and it was, therefore, satisfied that the Bill does not infringe the ECB’s fields of competence. Consequently, I am happy to confirm that the ECB has decided not to adopt an opinion on the Bill.

I reiterate the importance of the swift passage of this Bill, particularly to ensure the new compensation body can be established and to ensure the directive is transposed into law in Ireland as promptly as possible. In advancing this Bill, I believe we will achieve further improvements in the insurance environment to the benefit of both policyholders and industry and which will complement our ongoing reform work. I thank colleagues for their support on this important Bill to date. I look forward to working with them across the House to bring it through the Oireachtas in a timely manner. I commend the Bill to the House.

An Cathaoirleach Gníomhach (Deputy Verona Murphy)

We move to Sinn Féin. I call Deputy Doherty, who is sharing time with Deputy Ó Murchú.

Deputy Pearse Doherty

Cuirim fáilte roimh an mBille. The legislation has been introduced and the Minister of State talked about its swift passage, but let us call a spade a spade. We need its swift passage because the European Commission has begun proceedings because the Government delayed the transposition of this directive. The European Commission last month took the first step in infringement proceedings against the Government by sending a formal notice to the State for failing to fully transpose the motor insurance directive, which it was required to do last year, on 23 December.

The 2021 directive included legal definitions, minimum compulsory cover levels and provisions to compensate individuals involved in accidents in incidences where the insurer is insolvent. The key change in the directive, compared with the previous directive, is that, under its provisions, the victims of car accidents will receive the compensation they are due even when the insurance company is insolvent and member states will be required to establish and appoint compensation bodies to deal with claims that arise from these accidents. It also requires cross-border mechanisms so an injured party will be compensated by the compensation body in their member state of residence, with that compensation body then entitled to reimbursement from the equivalent body in the member state where the insurance company was based.

The Bill before us transposes Articles 10a and 25a of this directive and, as I said, this was supposed to have been completed by last year. Accordingly, the legislation will implement a number of measures and provisions under the 2021 directive. It will establish a body known as Comhlacht na hÉireann um Chúiteamh Mótair, the compensation body. It will also be responsible for dealing with the claims that arise from car accidents where the insurance company concerned is insolvent. Under this legislation, it will be the Motor Insurers’ Bureau of Ireland that is appointed to discharge this role. This is provided for in section 5.

Section 6 provides for the funding that will be made available to the compensation body from the insurance compensation fund to ensure it can pay claims as required under the directive. It provides that the compensation body will draw up a framework for the presentation and processing of relevant claims and that the claimant should receive claim payments within three months of the compensation offer being accepted.

Section 8 requires the Central Bank and the relevant insurance company to inform the compensation body of a decision by a court to begin insolvency proceedings against that company. The compensation body, Comhlacht na hÉireann um Chúiteamh Mótair, can then give notice of the insolvency to inform policyholders and injured parties so they are aware of and can avail of the new arrangements.

Under this legislation, the framework of the insurance compensation fund will be streamlined, operating as a one-stop shop for car insurance insolvency and ensuring claimants will be able to deal with the compensation body instead of having to deal with different insurers or liquidators regarding their claims.

An important provision of the directive which is provided for in this legislation is the move from a “host basis” to a “home basis” system. Under a “host basis” system, compensation is paid by the member state in which the risk is located. This means the scheme is targeted at the Irish customers of Irish and EU insurers rather than at the EU and Irish customers of Irish insurers. Under the new “home basis” system that is proposed, regulations may be introduced to set up a funding mechanism whereby insurers who are authorised in Ireland and exporting car insurance policies across the EU will contribute towards the cost of insolvency compensation. In essence, if there is an insurance company in another member state that sells insurance policies into our market, that member state will have to pay where that insurance company becomes insolvent.

There are also important auditing provisions within the Bill and I want to touch on some of these. Under section 16, the State Claims Agency will be required to carry out annual reviews with respect to samples of claims paid out by the compensation body, with the results of the audits to be presented to the Minister for Finance. This will ensure the compensation body has the information necessary to recoup money that has been paid out in error. One thing I note from the legislation is that the Minister will not be required to lay these reports before the Dáil. The question I pose is whether that would not be a desired requirement in the interests of transparency. Alternatively, will the State Claims Agency be required to publish these reports?

I would appreciate the Minister of State's comments in this regard, and we can tease that our further on Committee Stage.

Section 17 will also ensure the compensation body will not be allowed to pay out compensation above a certain amount until that claim has been audited by the State Claims Agency. That is a welcome provision. However, subsection (1)(a) provides that the Minister will determine the specific amount that will trigger an audit by way of a ministerial order. Will the Minister of State clarify the factors that will be taken into account in determining the relevant amount or has the Minister and the Department already decided on what that amount should be? If so, could that be shared with the Dáil today?

Section 18 will require the State Claims Agency to submit a report to the Minister where a car insurance company has become insolvent. Again, my question, similar to that regarding section 17, is whether such reports will be laid before the House or whether they will be published in such circumstances if they arise. I would also welcome clarification from the Minister of State with regard to that.

The legislation has been introduced to transpose elements of the motor insurance directive. I understand that, late in the day, this is being done by the Department at pace, and I appreciate the work the Department has put into this. However, I do question why it took the Commission to begin infringement proceedings against the State for failure to transpose this directive by the deadline that was set, which was 23 December of last year. For us in the finance committee, it is not a situation where we like to go, and I note the Government never allows for the waiving of pre-legislative scrutiny for any Opposition Bills, but we did waive pre-legislative scrutiny for this. Also, uniquely, which I am very uncomfortable doing but did support, we allowed a slot on the finance committee before this has even passed Second Stage. It is not a good position we and the Minister of State, who is responsible for this, are in when we basically have the European Union taking a case against Ireland for not transposing into legislation in time a directive that is about protecting consumers with regard to insurance. That is regrettable from a scrutiny point of view and in respect of legislation. Sometimes, something can go wrong in how we transpose it, and when legislation is rushed or adequate time is not provided to hear from external people, then sometimes it can be got wrong, and there are examples of that down through the years.

These provisions in the legislation are going to provide greater protections for consumers and injured parties in instances where insurance companies go insolvent, and the establishment of the compensation body should make it easier for claimants to receive compensation following their insurer's insolvency, rather than having to deal with liquidators in a haphazard and disjointed fashion, allowing them to instead deal directly with the Motor Insurers' Bureau of Ireland. The move from a host-based to a home-based system is also significant.

Of course, this legislation also provides an opportunity to discuss the wider issue of consumer protection and consumer interest in the insurance market. Consumers continue to pay too high a price for insurance cover, and we have seen that over recent years, where the insurance industry records skyrocketing and bumper profits. This is despite a fall in the cost and number of claims since the pandemic. Indeed, we have seen car insurance prices rise by 7% in the past year alone. For years, the motor insurance industry made bogus claims regarding insurance fraud, and it has called for reform to reduce the cost of claims. That is what it got when we introduced the personal insurance guidelines more than three years ago, which have substantially reduced payouts for third-party injuries. What we have not seen are the benefits of these claim cost reductions being passed in full to customers. Instead, what we have seen is insurance companies saving and pocketing these and insurers' profits being bolstered.

We need to address this. I introduced legislation that would require insurers to report to the Central Bank the savings they have passed on or failed to pass on to their customers. This would be an effective way to increase transparency and apply pressure on insurance companies to do the right thing and pass these savings on to their customers, as they told me and other members of the committee they would do if we introduced the reforms, which we have.

I hope with this legislation I have, which will come before the finance committee in the second week of July for Committee Stage, that the Government will work with me and Sinn Féin to get it over the line. The insurance industry cannot be allowed to drag its heels, and that is what it has done. It has dragged its heels and filled its pockets on the back of the reforms we have introduced in this House, and it is acting against the interests of consumers. I welcome the opportunity to speak on this legislation, the Motor Insurance Insolvency Compensation Bill. I look forward to scrutinising it further on Committee Stage and I am happy to work with the Minister of State. As I said, we have waived pre-legislative scrutiny and approved a slot in the coming weeks to allow this to go to Committee Stage. I am sure we will also work with the Minister of State on Report Stage as well to try to get this across the line. I would appreciate it if, at some stage, the Minister of State could respond to some of the issues I raised.

Deputy Ruairí Ó Murchú

I believe the Minister of State and Deputy Doherty have dealt with a fair amount of the technicalities of this. Deputy Doherty has put questions in front of the Minister of State. I hope he will reply to on the publication of reports and that general idea of transparency, which we obviously all welcome. Beyond that, as much as we all welcome this legislation, there is the question regarding the fact there are infringement proceedings by the European Commission, and we would welcome a general outline of the timeline and how we once again found ourselves in that set of circumstances.

The fact is we all want to see greater protection for customers and injured parties when insurers go insolvent. We could all detail multiple instances of reasons for having this and I think that is why we are all in support of the legislation to give provision to this directive. The setting up of the compensation body to compensate injured bodies is very welcome, as is anything that makes it easier for claimants to receive compensation following insurer insolvency. Instead of having to deal with the liquidators, they can engage directly with the Motor Insurers' Bureau and then receive compensation within three months instead of what can be a long, drawn-out process. This is obviously all very welcome.

I do not think it would come as any shock, and I imagine everyone who is here is going to talk about the fact, that while there have been strides taken, and I would say, to a degree, strides probably in some cases taken very late, in dealing with the whole insurance industry, the fact is not only was it done late but we have not necessarily seen the benefits of these. It is not the first time I have had an engagement with the Minister of State with regard to public liability insurance. I recall one of his former Government colleagues, the former Minister of State and Deputy Michael D'Arcy, when he had responsibility for this particular issue. I met him when I was a councillor with the former Deputy Gerry Adams, when he was a TD, and with Pelican Promotions. It was a company that did a huge level of work in inflatables, the sort of things people would have at every community group event, or at every communion and confirmation-type scenario. That was an issue that showed up how it was impossible for companies to get insurance where they were absolutely trying to do the best thing. It was my first indication of how the system and Government can fail in the sense that you would always think that, even if something is about to collapse or there is a particular issue in the industry, the system would prevail at the very end or even at the last minute. However, this proved to me that this was not the case.

I have to say that, at the time, I was quite impressed by Michael D'Arcy, particularly when he spoke about the fact, and I suppose a lot of people would have agreed with the sentiments he showed, that there needed to be huge moves taken regarding the duty of care piece. Obviously, we have seen in the past while the personal injury guidelines but his notion was that you could not necessarily trust that the insurers would follow suit. That is the scenario we are in at this time. That is why we would like to see Deputy Doherty's legislation, the Judicial Council (Amendment) Bill 2021, forcing the insurance industry to report to the Central Bank detailing how it has or, unfortunately, has not passed on savings to customers, euro for euro. That is the sort of transparency we need. I get that the Minister of State, the senior Minister and the Taoiseach and the Central Bank cannot direct the insurance companies but we really need to make sure there is transparency. We need to make sure there is absolute fairness with regard to it.

I remember speaking here before about the number of companies, if you want to call them that, community organisations, sporting organisations and community centres that were at times facing closure. The example I would use is where at one stage, a claim was put against Blackrock Community Centre, and suddenly its premium jumped to €11,000. Before any case and before any finding, it was €11,000.

Luckily, the people with responsibility for paying it were able to raise approximately €12,260 through a GoFundMe appeal which, obviously, would not be applicable across the board,. There was huge community buy-in. It just shows the abject disaster that is public liability insurance. My understanding at the time was that the Government had left it too late to make even the moves that have been made and that this was not a priority at Cabinet level. Many of the companies that offered public liability insurance, including for those in the childcare sector, left the market and people were left with one, or possibly two, companies to choose from. There was also a piece of work in keeping those insurance companies in the market. There have been some slight successes in getting more companies into this particular market. There is an issue as to how, eventually, we will operate a more European-wide market in which we get the benefits. Sometimes we do not necessarily get the benefits that are available to those other states, but we also have to get our own show in order.

The fact that we are in this case means we need to see more companies coming in and ensure they are coming in to offer a fair, sustainable and operable service to companies, community organisations and businesses. We all know the issues in public liability insurance through the years. While this is something we need to see, we also need to accept that motor insurance was an absolute disgrace at one point and we still have not seen the necessary savings in that field.

The moves taken are necessary, but some of them are late. This just needs to be done better and more quickly. We also need to make sure we find the means to keep insurance companies honourable and truthful and ensure they offer a service at a sustainable rate. Currently, all we are seeing are increased premiums and increased profits and that is not in any way acceptable. The only term I can use to describe this is unsustainable.

I and other Members have previously spoken about the issues affecting the inflatable industry, outdoor event companies, people involved in tourism and other industries. If we want to sustain the entire community, voluntary and sporting sector and all the rest of it, we have a huge piece of work still left to do.

In the time I have left, I wish to speak to an issue I raised with the Minister of State previously and with the Taoiseach this week. I was at a briefing run by Dundalk Chamber of Commerce in the Ballymascanlon Hotel on cross-Border workers and employers. Huge issues still exist in this regard, whether we are talking about redundancy payments, pension lump sums, tax relief on pensions, contributions for cross-Border workers or social insurance benefits. Significant changes are occurring across the board. Remote working, in particular, is an issue. While we had obvious difficulties and worries for workers in the context of redundancies at PayPal, when it became a complete 100% remote-working centre, it had a number of Northern employees, due to the fact it was based in Dundalk. For taxation purposes, PayPal had to create its own Northern set-up, or its own “UK set-up” as it would term it, although that is not a phrase I would particularly use. Major international and multinational companies have the capacity to do that but that sort of setting up of dual-jurisdiction operations is not viable or operational for small outfits. I spoke to the Taoiseach about this issue. There needs to be engagement. The Northern Executive is up and running, with Mr. Conor Murphy as Minister for the Economy and Ms Caoimhe Archibald as Minister of Finance. Mr. Paddy Malone has spoken to the Minister of State about this and he brought it up when Ms Michelle O’Neill was in Dundalk recently. There must be agreement across the Border in respect of operations like. We will probably have to deal with the British Government on it, which might be easier following the UK general election.

Deputy Ged Nash

If the Cathaoirleach Gníomhach will indulge me for a moment, tributes were paid to our usher and good friend, Martin, by the Ceann Comhairle and others during Leaders’ Questions. I wish him well in his retirement after 25 years of outstanding service in the Oireachtas. I thank him for looking after all of us and our interests. It has been a pleasure to work with him. He always showed good humour in his work and that is always welcome, especially during anxious times for some of us in here. We appreciate his service and his work over the years.

This legislation is welcome but it is also late. Once again, the Government has waited until it was threatened with punitive action by the European Commission before acting to protect Irish consumers. Last July, the European Commission took the first step in infringement proceedings against Ireland for failing to implement the directive on motor insurance. In fairness, we are not alone in being tardy in introducing this legislation; that warning from the Commission was sent to 16 member states. It should not have taken the Commission to wave a big stick at us before acting on this one.

The warning bells on this issue were sounded a decade ago when Malta-based Setanta Insurance left its Irish customers out in the cold and out of pocket when the company collapsed. Some 1,750 Irish Setanta customers ended up pursuing their claims with the Motor Insurers Bureau of Ireland. Under this new legislation, those claims would now be met by a compensation fund set up in Malta. In the wake of the Setanta collapse, the MIBI was landed with claims amounting to €90 million and Irish consumers were subjected to premium hikes that followed the crisis. Under the new framework established under this legislation, the MIBI will still be the first port of call for affected Irish consumers but once the MIBI pays out, it will be able to pursue reimbursement from similar funds set up in the EU state where the insolvent insurer is based. This legislation will set out the framework for the presentation and processing of such motor vehicle liability claims to the MIBI, including a provision that claimants should receive payment of compensation within three months of the date their offer of compensation is accepted. This legislation will facilitate a comprehensive streamlining of the existing legal framework relating to the insurance compensation fund for motor insurance insolvency so that claimants will deal efficiently and directly with the motor compensation body, rather than dealing with different liquidators or motor insurance companies. This is sensible legislation which seeks to compensate victims of accidents in cases where, for example, the responsible insurer is insolvent, even if that insurer is based in another EU country. It will help to avoid another Setanta-like mess. When the legislation comes into effect, a Setanta-like crisis can never happen again. This, of course, will be cold comfort to those who suffered after Setanta’s insolvency but it at least ensures there can be no repeat of it.

When this legislation comes into effect, it will be the responsibility of the host country of the insurer to foot the bill through its own compensation fund. It will move us from operating a host-based system to a home-based system. A home-state system applies when the scheme covers policies issued by a domestic insurer that participates in the scheme, including its branches abroad. Of course, that works both ways and our compensation fund will potentially compensate EU customers of Irish-based insurers, should they fall into insolvency.

In the establishment of the new fund that will underpin this legislation, the Government must ensure the insurance industry does not pass the cost on to consumers who are already crippled by huge motor insurance premiums. I welcome the Government’s expectation that a new levy will not be required to establish the fund but the Government and consumer watchdogs must keep their eyes peeled for premium hikes as this new legislation takes effect.

We have seen a welcome fall in some aspects of the insurance sector and some insurance premiums in recent years but all the reporting suggests we will see price rises again this year. Indeed, Mr. Charlie Weston wrote today that we have seen, for the ninth successive month, a continuing rise in motor insurance premiums. To the best of my recollection, compared with this time last year, the price has gone up approximately 7.5% on average. This time, the insurance industry is blaming the increased costs of repairing modern cars for the planned hikes. Whatever the bona fides of that claim are, it is clear the insurance industry does not need much excuse for hiking premiums. In that context, the Government and its consumer watchdogs must be careful to ensure the industry does not use this legislation as leverage or as an excuse for further hikes.

It is sensible that the new compensation fund which will underpin this legislation will fall under the remit of the Motor Insurers Bureau of Ireland, which already compensates people injured in road-traffic accidents involving uninsured drivers or drivers who have fled the scene and cannot be traced. A welcome feature of the Bill is that it provides for the honouring of claims within three months from an offer being accepted by the policyholder. Customers of Setanta Insurance had to go through a long and drawn-out legal process to advance their claims and this legislation should prevent that from happening again.

In essence, this Bill will simplify the process for those who through no fault of their own, find themselves caught up with insolvent insurers based abroad but operating in Ireland. With this legislation in place, such unfortunate consumers will know who to go to pursue their claims and will have an assurance that those claims will be honoured in a timely manner. This sensible consumer-protection measure is long overdue and my Labour Party colleagues and I are happy to support it.

Deputy Joe Flaherty

I was in the Chamber this morning when Martin from the usher's team was congratulated on his retirement. I did not get an opportunity to speak then, but I want to congratulate you. You have given exemplary service, as do all the ushers. Twenty-two years here is a long time. If I get 22 years here, I will be very happy, but I think it will be harder for me to stay the 22 years.

I welcome the legislation and commend the Minister of State's work on it. The Bill will provide protection and timely compensation for motor insurance policy holders in the event of an insurer going insolvent. However, there is a genuine concern that the cost-of-living challenge in recent times has helped to mask the insurance sector's stonewall refusal to address premium rates and the postcode lottery when it comes to the cost of insurance premiums in this country.

I was heartened in recent weeks to hear that the heads of all the top insurers had been summoned to explain why they had not cut premiums. I understand they are expected to take action imminently on the cost of premiums. This is welcome and that get-tough approach is needed with the sector.

However, despite a suite of measures and supports by the Government to address insurance costs, the big profit-driven players have simply stonewalled our efforts to pass on premium reductions. Mr. Brian Hanley, chief executive of the Alliance for Insurance Reform, argues that premiums all over the country should have been significantly reduced following a crackdown on payouts in recent years. Instead, as Deputy Nash pointed out, motor insurance premiums have risen for the past eight months in a row. There is a real need for premiums to come down, given the sizeable drop in claims and awards being granted, according to Mr. Hanley. As noted in The Irish Times today, we are heading into nine months of unchecked premium increases despite a 400% reduction in motor and public liability claims since 2019. Every area and every part of this country, including the Garda, local authorities, this House and, specifically, the Minister of State's office, have played their part in driving down costs, in a whole-of-society approach to addressing insurance costs. Just one player refuses to play its part and that is the profit-rich insurers themselves.

In addition, the insurers continue to cling to dated and historic data in order to penalise young motorists, in particular, based on their address. A recent survey carried out by UCD-based artificial intelligence research group CeADAR in conjunction with Idiro Analytics laid bare the sector’s ongoing and totally unjustified penalisation of motorists based on their address. Young motorists in affluent Dublin suburbs pay less for insurance than more experienced motorists from less well-off areas. A driver’s address has been proven to be a major factor for insurers when setting premiums, according to an examination of nearly 40,000 quotes from ten of the main car insurance companies. For example, an experienced 60-year-old driver with no penalty points and living in a less well-off area would be expected to pay up to €338 more for their insurance than a 25-year-old from Glenageary in south Dublin. This makes absolutely no sense at all. Closer to home for me, in Longford town, the average quote for a 25-year-old was €2,164, while a driver with the same criteria and age profile from Crookstown in County Cork would be required to pay less than half of that, with a quote of just €849. Research from UCD states that this is, "the most extreme disparity in car insurance quotes".

Dr. Adrian Byrne, lead researcher for the project, also raised concerns about the use of Al by insurance companies. He questioned whether artificial intelligence is now playing a role in determining quotes based on postcodes. Will the Minister of State confirm whether he has addressed the use of AI in the determination of quotes for premiums with the insurance companies? Dr. Byrne was quoted recently in the Irish Daily Mail as saying:

If car insurance companies are employing Al more and more, they need to guard against harmful bias that may lead them to be non-compliant with the new EU Al Act because data features that are important to their business are also correlated with other aspects of society so can encroach on social determinants of success in life.

European legislation due to be introduced later this year will see essential service providers such as car insurance companies penalised for failing to guard against bias in their Al systems. I understand there are significant fines for companies that breach these new regulations. The Irish Daily Mail article further quotes Dr. Byrne as stating:

There could be unconscious bias through their Al channel because they might not understand everything their Al is doing - aside from the specific outcomes they want [which in most cases is greater profit] - but the Act means they must guard against negative bias. To do that they have to detect it and to do that they need to have processes in place.

The insurance sector continues to penalise regions such as County Longford when it comes to setting premiums, notwithstanding a continual decline in claims. I ask that the Department continue its firm push on the sector to drive down costs. I also ask that the Minister of State and his officials engage with the industry on the rationale for pricing premiums. The Minister of State should confirm whether AI is being used. If it is, we need to be assured that adequate safeguards are in place for the protection of consumers.

Deputy Róisín Shortall

At the outset I would like to join with others in wishing Martin well in his retirement. His 22 years of service have provided an incredible record of helpfulness and professionalism. We all found him very good to deal with and always very supportive. I wish him good health and happiness in his retirement.

I welcome this legislation, which the Social Democrats are happy to support. The transposition of Articles 10a and 25a of the amended motor insurance directive will certainly strengthen protections for policyholders and enhance the existing legal framework. The introduction of a one-stop-shop model whereby the Motor Insurers Bureau of Ireland acts as the compensation body for Ireland should streamline the process for claimants. The move from a host-based system for insurers to a home-based one is also very welcome.

However, the Minister of State's claim last month that this Bill was further testament to the Minister's commitment to insurance reform was surely a bit of a stretch. The Bill came about because of an EU directive. It is not a Government-led initiative. In fact, we know that the EU had to begin infringement proceedings to get the Minister to act. The deadline for transposing the 2021 directive was 23 December 2023. To suggest it is part of the Government's insurance reform plan is just spin.

On the subject of those reforms, I will make a few points. While this Government's programme of insurance reform and regulation was welcome, it has not delivered for communities or businesses. Fine Gael prides itself on being the party of business but after 13 years in government, it has still not addressed the very heavy burden that insurance costs place on small businesses. In April, the Central Bank of Ireland published its national claims information database liability report for 2022.

It found that premiums for public, employer and commercial property liability cover increased by 8% in 2022 despite the total cost of settlements falling by 14% or €43 million since 2019. The best the then Minister of State with responsibility for insurance, Deputy Carroll MacNeill, could say in response was that she would raise it with the insurance industry. Frankly, that is not good enough. I urge the new Minister of State to take a much firmer stance with the sector. After all, insurance companies providing employers' liability and public liability cover recorded record profits of €176 million in 2022 after taking in nearly €1.3 billion in premiums.

Clearly, the Government's insurance reforms have not adequately addressed the high cost of insurance for communities or small businesses. On this Government's watch, play centres are closing down, expenses for sports clubs and community groups are escalating, tourism and activity-based businesses are really struggling to remain open, touring performers are skipping playing Ireland and costs for small businesses are being driven up. With the exception of those with vested interests, everyone loses under the current system. That is why a radically different approach is required. We should be looking at the different options in this regard. For example, we should be looking at other models such as co-operative or group insurance to promote more stable and affordable options for small businesses and for sports and community groups. The Government should also undertake a review of State-run insurers in other jurisdictions such as, for example, Canada, as a way of delivering affordability. It is clear that the motivation of private insurers is to maximise shareholder profits and that is not compatible with the long-term interests of our communities and our county more generally.

This Government may have delivered some worthwhile insurance reforms during its tenure but the power imbalance between insurers and policyholders is still far too heavily skewed. The customer should be at the centre of insurance policy-making, not the insurer. How much longer can the customer be expected to carry the burden of high premiums while insurers profit to the extent they have been. We need far more to be done to protect consumers and to put them at the heart of policy in this area.

An Cathaoirleach Gníomhach (Deputy Verona Murphy)

As there are no more Deputies in the Chamber, we go back to the Minister of State to wrap up. He has 15 to 30 minutes to do so.

Minister of State at the Department of Finance (Deputy Neale Richmond)

I thank all the Deputies for their contributions to this extremely important and worthwhile debate. I will address all the points and the questions raised, but there are a few things I would like to add in response as well. I do not think I will take the full 30 minutes. I will try my best to get in and get us on the road. I look forward to engaging further on Committee and Report Stages in respect of the issues which have been raised today and on which we can provide additional clarity.

I reiterate that the Motor Insurance Insolvency Compensation Bill 2024 represents an important enhancement of the protection of motor insurance policyholders in line with the EU’s sixth motor insurance directive. Indeed, this goes way beyond what is simply required under the directive so it is simply false to say that this is just something coming from Brussels. We have complemented and enhanced this but I do not know if that is something Deputy Shortall wants to hear. Ultimately, this Bill is a vital because it will further protect customers and injured parties when an insurer becomes insolvent. It also very much complements and is a central part of the Government’s ambitious insurance reform agenda. I will touch on the latter a bit more in a moment. A few people raised it, and it is important to bring a little clarity to the debate by highlighting the statistics.

The Bill builds upon the existing insurance compensation framework currently in place within the State through the establishment of a compensation body with a centralised function to compensate policyholders and injured parties. This is a positive development for consumers, making it easier for claimants to seek compensation following a motor insurance failure. The Bill formally appoints the Motor Insurers Bureau of Ireland to this role. Ultimately, this legislation, when enacted, means that if a person has an accident and the insurer involved is insolvent, the Motor Insurers Bureau of Ireland will ensure that the claim for compensation is dealt with efficiently. The Bill sets out the framework for the presentation and processing of such motor vehicle liability claims to the motor compensation body, including that claimants should receive payment of compensation within three months from the date their offer of compensation is accepted.

Other provisions within this Bill will facilitate a comprehensive streamlining and enhancement of the existing legal framework relating to the insurance compensation fund for motor insurance insolvency such that claimants will deal efficiently and directly with the motor compensation body. Importantly, customers will go directly to the Motor Insurers Bureau of Ireland who will handle these claims, and will ensure that customers receive their compensation within three months of the offer rather than dealing with liquidators. Significantly, the Bill preserves the existing broad spectrum of compensation that is available domestically under the 1964 Act for claims relating to motor vehicle liability by allowing the compensation body to also handle, for example, claims on comprehensive motor policies, which predominate the Irish market, rather than the minimum bar of third-party cover as is the requirement under the directive. As such, we have tailored our approach under this Bill to meet the specificities of the Irish motor insurance market so that coverage afforded to individuals under the 1964 Act whose insurer goes into liquidation will be continued under the Bill.

As I mentioned earlier, a crucial component of this Bill and the EU directive is the move away from what is known as the host-based system to the home-based system for insurers. This means that if an insurance company is based in another EU member state and is selling into the Irish market, it will ultimately fall on that member state to pay if the insurer becomes insolvent. Irish policyholders will not have to foot the bill in such instances. Crucially, the cost of these claims will be met by the home country of the insurer, meaning that Irish insurance customers will not be footing the bill for insolvencies outside of Ireland. This change was partially addressed through SI 658/2023. This is also to be achieved under the Bill by establishing the home-based regime in legislation, and authorising the Minister to introduce regulations to establish a funding mechanism to require Irish-authorised insurers exporting motor policies across the EU to contribute towards the cost of insolvency compensation as they are now within scope under the home basis.

In terms of funding, the compensation body will have recourse to the insurance compensation fund to cover the costs and expenses of the compensation body while performing its duties under the Bill and to provide it with the funds it needs to compensate injured parties when such payments are due. In light of the change from a host-based system to a home-based system, sufficient flexibility should be retained in the Bill to allow the Minister introduce regulations requiring insurers writing risks outside the State to contribute to the financing arrangements. Accordingly, Part 5 authorises the Minister for Finance to introduce regulations to establish a funding mechanism to require such Irish authorised insurers to contribute towards the cost of insolvency compensation in respect of their cross-border business. Such regulations may empower the Central Bank of Ireland to establish a sub-fund of the insurance compensation fund into which contributions collected under this regulation should be paid. Any such financial contributions will relate to motor third party liability insurance carried on by Irish authorised insurers in other member states and, as such, should not impact Irish motorists. It is planned that these regulations will be developed in due course following the necessary consultation and consideration of the relevant issues, including, for example, the total gross written premium collected by Irish authorised insurers from cross-border risk, that is, adding up premium received in all foreign jurisdictions, and the specific nature of such cross-border business.

With respect to the costs and expenses incurred by the compensation body and the payment of claims by the compensation body, the Bill provides for a comprehensive and robust oversight framework of these expenses and claims payments. In addition to the necessary internal governance processes of the compensation body, and the internal and external audit processes for the compensation body itself, Part 3 provides for a robust review and auditing process, including that: an audit will be carried out by the State Claims Agency on a sample of claims on an annual basis; and a further ex ante check will be carried out by the State Claims Agency on certain claims above a material threshold before such a payment is made. Provision around this may be further clarified by way of an order issued by the Minister for Finance.

In response to Deputy Doherty's point, it is worth noting that a statement of the amount of compensation paid will be included in a report to be submitted to the Minister and laid before the Oireachtas and will be included in the report submitted by the Central Bank to the Comptroller and Auditor General for possible audit. Also, regarding the other point raised by the Deputy, pursuant to section 17, the Minister for Finance is required to specify an amount that is considered appropriate for the purposes of triggering a further ex ante review by the State Claims Agency of claims above that relevant amount.

The Minister will take into account factors that might impact the operational efficiency of the compensation by the including a requirement to make an offer and-or payment within the three-month deadline. Officials in Department of Finance have engaged extensively with relevant stakeholders including the Central Bank of Ireland, the State Claims Agency and the Motor Insurers Bureau of Ireland to determine an appropriate threshold in this context. The governance and oversight framework under the Bill needs to be balanced by ensuring that claims can be processed in accordance with the prescribed three-month timeframe under the sixth motor insurance directive in particular. This create challenges in terms of capacity and timing for excluding an ex ante review which have been extensively explored with relevant stakeholders. Our current understanding is that relevant stakeholders will be required to work within a timeframe of approximately five to ten days for the purpose of carrying out an ex ante review.

A number of Deputies raised the issue of delays and infringement. It is important for the information of the House to lay out the timeline. The Department received a letter of formal notice from the European Commission on 23 May of this year regarding Ireland's failure to completely transpose Articles 10a and 25a of the motor insurance directive before the 23 December 2023 deadline. The Department is now required to provide a written response to the Commission's letter before 23 July next and to submit its observations on the infringement processes and an update on the transposition process. Ireland remains absolutely committed to transposing the remaining provisions of Articles 10a and 25a by means of the Bill before the House as soon as is practicable.

Throughout the transition process, the Department fully engaged with the Commission authorities and provided regular updates on the status of our work and the complexity of our arrangements. This open and positive communication continues, including notification of the waiver of pre-legislative scrutiny and the Bill's status on the priority list for publication on the Government's spring legislative agenda. Following approval of the Bill by Cabinet on 28 May, a further update was provided to the relevant officials in the Commission. Engagement is ongoing and it is something that we are completely open to with the Commission.

It is important to look at the complexity of this Bill given that it is overlaid on existing domestic arrangements. In fact, live insolvencies are currently being worked through for both Quinn and Setanta. We also had and a shorter transportation period on this directive of 18 months compared with the regular 24 months which is the standard period. We were quite right to have a really large-scale stakeholder engagement. That will be crucial to ensuring this legislation works and also the fact that ultimately, as I stated earlier, we require primary legislation as opposed to simply using statutory instruments. As I stated we went way above and beyond what was required under the directive from the Commission. That is why we are absolutely committed to continue to push on.

Four or perhaps five Deputies referred to insurance costs in various sectors. It is a regular debate that has been happening in this House for a considerable time and will and should continue to happen. I will pull out one statistic from the CSO data. We can take snapshots at time but it is important look at this over a duration. Deputy Ó Murchú compared what is happening in certain sectors with it what is going on in the United Kingdom. Of course, we can easily compare insurance costs and in this jurisdiction with the North or indeed the United Kingdom and we can see where the favourable comparisons lie. The most recent CSO consumer price index for April shows that the price of motor insurance just increased by 1% month on month. However, altogether it was 40.2% lower than it was in 2016. That is a point to remember when we get caught up comparing one month with another. When we look back to what was happening eight years ago, the average rate is down by 40% which is considerable. I absolutely accept there are still challenges in not just that sector but more widely. We do not shirk away from those challenges as Deputy Flaherty laid out with the impact that the overall Government reforms have had and will continue to have.

Deputy Ó Murchú raised the issue of community festivals. I remember his colleague Deputy Paul Murphy talking about bouncy castles for the spring fair in Killinarden a couple of years ago and also provision in childcare centres. As he said, there have been some entrants into the market. Three weeks ago, I was privileged to welcome OUTsurance into Cherrywood adjacent to my constituency, bringing 300 new jobs. It is the largest company from outside this jurisdiction to come here for over ten years and will have a real impact on the market.

As Deputy Ó Murchú knows, my wife is a Montessori teacher. A couple of years ago she set out to establish a Montessori school. There was not a single provider in the market at the time. It was post Brexit. They had all left. There was one person who was providing for existing schools. We now have at least three providers in the market offering cover for crèches and Montessori schools. It is incremental process but it is real progress and the environment has changed. Do I hope and expect it to change quicker and more impactfully in relative terms? Absolutely, but it is important to highlight all those things.

Two weeks ago, I had an engagement with representatives of the Restaurants Association of Ireland. They laid out their ten biggest concerns and insurance has gone from second to eighth. The fact that they can work with brokers but also directly at source with companies has shown that there are now far more opportunities for restaurants, cafés and bars around the country than previously. The the reforms put in place by my predecessors - it was not me and so I am not exactly claiming this as my own work - have had a tangible impact despite the fact that there are always issues.

One of the big things that has happened in the past four or five weeks is of course the Supreme Court ruling in the Delaney case, ensuring that the injury resolution board and its awards will have a real meaningful impact. That will limit many of the vexatious claims and many of the extension of claims going through the courts and driving up costs. That only happened a few weeks ago. It literally happened the day I was appointed to this portfolio by the Taoiseach and I look forward to seeing it in real time.

I want to get back to the specifics of this important legislation. Deputy Doherty and others will engage further on Committee Stage imminently. It is really important that we continue that level of debate and focus on the specific questions that he raised that I have provides partial to full answers on now and we will get into the weeds of it on Committee Stage and no doubt on Report Stage. That will give us the opportunity to pass this legislation as expeditiously as possible in order to make sure that we can bring in this cover for consumers across Ireland as quickly as possible.

I thank all the Deputies and members of the Oireachtas committee for their contributions to the development of this legislation. The decision to waive pre-legislative scrutiny was extremely welcome. We have had a good wide debate here, albeit with a limited number of speakers which is understandable given the week that is in it. There is much more to discuss on the specifics of this issue. This important legislation will ensure injured parties will get their just compensation in a timely manner. I look forward to bringing it through the Oireachtas in the weeks ahead.

Question put and agreed to.