Pearse Doherty
Question:21. Deputy Pearse Doherty asked the Minister for Finance when all sections of the Consumer Insurance Contracts Act 2019 will be commenced; and if he will make a statement on the matter. [16295/20]
View answerThursday, 16 July 2020
Questions (21)
Written answers
I intend to commence this Act shortly. This is in line with the commitment I had previously given that this matter would be determined by the Minister for Finance of the new Government. The Act will be commenced in the following manner-
(i) The bulk of the provisions of the Consumer Insurance Contracts Act will come into effect on the 1st September 2020. The commencing of the majority of the provisions of this Act will, amongst other things, place an onus on insurers to handle claims promptly and fairly, and reform other aspects of insurance law such as the practice of warranties and replacing the principle of insurable interest.
(ii) The remaining sections - (Sections 8, 9, 12, 14(1)-(5)) will come into effect on the 1st September 2021. These sections relate to the requirement of insurers to disclose pre-contractual information to the consumer, and the requirement of insurers to provide a schedule of the past five years of premiums and claims to the consumer at renewal. On the basis of my previous discussions with the insurance industry, I believe that a reasonable amount of time is required before these provisions are commenced as to do otherwise may not be in the best interest of the consumer and also allows the sector sufficient time to reasonably put in place the necessary new systems and processes.
Insurance Ireland has been advised that the commencement of this Act is now imminent, and I have repeatedly said that the necessary preparations need to be undertaken by the industry.
I believe this Act is an important part of insurance reform and its implementation will balance the contractual relationship between insurer and consumer.