Tuesday, 1 April 2014

Questions (177)

Michael McGrath

Question:

177. Deputy Michael McGrath asked the Minister for Finance if he will provide in tabular form the total amount raised from the levy on insurance policies in each year from 2005; and if he will make a statement on the matter. [15095/14]

View answer

Written answers (Question to Finance)

The levy to which the Deputy refers is the Insurance Compensation Fund (ICF) levy of 2% being applied to home, motor and commercial insurance.  The levy operates under the Insurance Act 1964 and came into effect from 1 January 2012, following the appointment of administrators to Quinn Insurance Ltd (QIL) by the High Court. The total amount raised is as follows:

Year

Total received

2012

€45,565,922.16

2013

€65,697,953.38

2014 (up to 27th March 2014)

€15,073,865.78

Total

€126,337,741.32

A total of €126,276,790.95 has been transferred by the Revenue Commissioners to the ICF. €60,950.37 has been deducted to cover the set up costs and annual administration costs of collecting the levy. 

Under Section 6 of the Insurance Act 1964 the responsibility for deciding whether the ICF (the Fund) has sufficient funds available to it at any particular time is a matter for the Central Bank of Ireland (CBI). Where, in the opinion of the CBI, the state of the Fund is such that financial support should be provided for it, it determines an appropriate contribution to be paid to it by each insurer calculated as a percentage, not exceeding 2% of the aggregate of the gross premiums paid to that insurer in respect of policies issued in respect of risks in the State. Funds from the levy are collected from insurers by the Revenue Commissioners and these funds are transferred on a monthly basis to the ICF.

The ICF levy was previously introduced on 1 January 1984 following the collapse of PMPA in October of the preceding year. The 2% levy was paid by all non-life insurers at this rate until 31 December 1991 and a reduced levy of 1% applied for the period 1 January 1992 to 31 December 1992, when it was discontinued as sufficient moneys had been collected to successfully complete the administration of the former PMPA.