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Insurance Compensation Fund

Dáil Éireann Debate, Tuesday - 6 May 2014

Tuesday, 6 May 2014

Questions (174, 175)

Finian McGrath

Question:

174. Deputy Finian McGrath asked the Minister for Finance the amount of money in the insurance compensation fund; if he will quantify the amount paid into this scheme from all insurance policies over the past ten years. [20354/14]

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Finian McGrath

Question:

175. Deputy Finian McGrath asked the Minister for Finance the moneys that have been paid out from the insurance compensation fund over the past ten years; and if he will make a statement on the matter. [20355/14]

View answer

Written answers (Question to Finance)

I propose to take Questions Nos. 174 and 175 together.

The Insurance Compensation Fund (ICF) is funded through 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.  Under Section 6 of the Insurance Act 1964 the responsibility for deciding whether the ICF 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 ICF 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 total amount transferred to the ICF is as follows:

 Year

Total received

2012

€45,565,922.16

2013

€65,697,953.38

2014 (up to 1st May 2014)

€15,099,263.28

Total

€126,363,138.82

The above total has been collected by the Revenue Commissioners from the ICF levy. €60,950.37 has been deducted to cover the set up costs and annual administration costs of collecting the levy.

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. In the last ten years €1,118m has been paid out of the fund broken down per year as follows:

 Year

Total advanced from the ICF

2004-2010

0

2011

€320m

2012

€488m

2013

€310m

Total

€1,118m

The balance between the amount paid out of the ICF and that paid into the fund from insurance policies is made up of existing cash in ICF, receipts following the completion of the Icarom and Primor administrations and advances from the Exchequer.

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