Dáil Éireann Debate, Tuesday - 30 April 2013
146. Deputy Michael McGrath asked the Minister for Finance if the Central Bank of Ireland is currently or has any intentions of investigating the withholding by certain insurance companies from policyholders, entirely arbitrarily and outside of contract, of a percentage of agreed losses in relation to insurance claims; if he will confirm the current status and scope of any such investigation; and if he will make a statement on the matter. [19778/13]
View answerThe Central Bank has informed me that they have recently commenced a themed inspection into the handling of home insurance claims. I understand that this inspection will include an examination of household property claims files where the damage was caused by water. All aspects of the claims handling and payment process will be looked at, including claim settlement retentions in order to ensure that there is compliance with the Consumer Protection Code. The review will include looking at issues such as the information being provided to consumers in the course of the claim and the timelines surrounding the settlement of property claims.
It should be noted that themed inspections are carried out as part of the themed inspection process and focus on a particular area or issue from a consumer protection perspective and a number of firms are selected for inspection to monitor compliance with the requirements in place. Where breaches of the Consumer Protection Code are identified, they may form the basis for the Central Bank taking regulatory or enforcement action.
Finally, the Deputy should also note that if a policyholder has a complaint about an insurance company not honouring a claim on a policy, they can refer the matter to the Financial Services Ombudsman for adjudication at http://www.financialombudsman.ie/ .
