asked the Minister for Industry, Commerce and Energy if it is the policy of the major insurance companies associated with the Life Offices Association of Ireland to pay all life insurance policies when they now mature in IR£ notwithstanding the fact that premiums have been paid in sterling, if he is aware of the serious losses being suffered by Irish policy holders in this situation, and if he will make a statement outlining his proposals on the matter.
Ceisteanna—Questions. Oral Answers. - Life Insurance Policy Payments.
9.
All policies now issued by life offices in Ireland are expressed in Irish pounds. The only contracts which were expressed in sterling were those issued prior to 1960. Following the break in parity between Irish and UK currencies most life offices have given holders of policies expressed in sterling the option of selecting between the two currencies with future premiums to be paid in the currency selected. Given the fluctuations which can arise in the value of the two currencies, the only action which I consider necessary is to ensure that, where policyholders are entitled to be paid in a particular currency, that right is not denied to them.
Would the Minister agree that in relation to a number of policies which have been maturing, policies paid in sterling in the last five to 20 years, a number of these companies have forwarded cheques on maturity in Irish pounds and have effectively discounted their premium payments to Irish policy holders and that that practice seems to be continuing in some areas?
Since the break in parity between Irish pounds and sterling, where policy holders insist on being paid either in Irish pounds or in sterling, so far as I am aware they have been facilitated by the companies. If the Deputy has an instance in mind where that has not been done, we will be happy to help.
I will forward them. I have received quite a number of complaints.