Dáil Éireann Debate, Thursday - 27 November 2014
67. Deputy Terence Flanagan asked the Minister for Finance if he will provide an update regarding claims unpaid arising from those insured with the now defunct company (details supplied); the persons or organisation that will pay these claims; and if he will make a statement on the matter. [45754/14]
View answerThe Insurance Compensation Fund (ICF) provides for payments to meet the liabilities of insolvent insurers in certain cases where it is unlikely that claims can be met otherwise than from the ICF. Under the Insurance Act 1964 claims by bodies corporate or unincorporated bodies are not covered by the ICF, except where there is a liability to or by an individual. In addition, all ICF payments are subject to a limit of 65% of the amount due or €825,000, whichever is the lesser. Management and administration of the ICF is under the control of the President of the High Court acting through the Office of the Accountant of the Courts of Justice.
I am pleased to say that I have been informed that having considered legal advice on the operation of the legislation, the Accountant is now satisfied that it is appropriate to make applications to the High Court for approval to release monies from the ICF for compensation, prior to the completion of the liquidation of the company.
Every effort is being made to ensure that claims can be dealt with as expeditiously as possible. The Accountant of the Courts of Justice is in ongoing discussions with both the Liquidator and his legal advisors to put in place appropriate mechanisms to make the applications to the High Court in accordance with the Insurance Act 1964. I am advised that in tandem with this he is also working to acquire the necessary skilled resources to enable applications to the ICF to be processed effectively and efficiently. Due to the unprecedented nature and scale of the insolvency the Accountant is not yet in a position to provide a timetable for applications to be made to the Fund, but it is hoped that applications by the Accountant to the High Court can begin sooner rather than later.
I appreciate that the current uncertainty regarding the timing of compensation payments is causing difficulty for the former customers of the insurance company and I have asked that information on ICF procedures is made available publicly as soon as possible. The Accountant of the Courts of Justice can only deal with claims which are submitted by the Liquidator, so the advice to all claimants continues to be that they should contact the Liquidator.
