Dáil Éireann Debate, Thursday - 16 July 2015
177. Deputy Michael McGrath asked the Minister for Finance the current balance in the Insurance Compensation Fund, his views that it is adequate to meet all possible claims on it; and if he will make a statement on the matter. [29807/15]
View answerThe Insurance Compensation Fund was established by the Insurance Act 1964. Its purpose is to protect policy holders in the event of their insurer becoming insolvent. The management and administration of the Insurance Compensation Fund is under the control of the President of the High Court acting through the Office of the Accountant of the Courts of Justice.
The Central Bank of Ireland has responsibility under Section 6 of the Insurance Act 1964 to assess the Fund from time to time to see if it needs financial support. Where the Central Bank is of the opinion that the state of the ICF is such that financial support should be provided for it, it is allowed determine an appropriate contribution to be paid to the ICF by each insurer or insurer authorised in another Member State. This is calculated as a percentage determined by the Central Bank, not exceeding 2 per cent, of the aggregate of the gross premiums paid to the insurer or insurer authorised in another Member State in respect of policies issued in respect of risks in Ireland. Currently, the levy is set at 2 per cent.
The role of the Minister for Finance in relation to the ICF is prescribed in Insurance Act 1964. The Minister may, on the recommendation of the Central Bank, advance from time to time to the ICF such sum as he thinks proper to enable payments out of the Fund to be made expeditiously. Advances shall be made on such terms as to repayment, interest and other matters as may be determined by the Minister for Finance after consulting the Central Bank.
As Minister for Finance I also have a role to protect the interests of the Exchequer, and in that context I seek to ensure that any call on the ICF is kept to a minimum.
The balance of the Insurance Compensation Fund as at the 14th July 2015 was €20,433,116.82. It is anticipated that the Insurance Compensation Fund will be adequately funded to meet all expected claims on the fund.
