Dáil Éireann díospóireacht -
Wednesday, 18 Feb 1998

Vol. 487 No. 4

Written Answers. - Insurance Ombudsman Scheme.

Liz McManus

Ceist:

31 Ms McManus asked the Tánaiste and Minister for Enterprise, Trade and Employment if, in view of the announcement by the Ombudsman for the Insurance Industry that she is stepping down and allegations that this was as a result of undue interference on the part of the industry; the plans, if any, she has for the appointment of a statutorily backed ombudsman; and if she will make a statement on the matter. [4062/98]

Charles Flanagan

Ceist:

39 Mr. Flanagan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the proposed resignation of the Insurance Ombudsman and the resignation of a member of the Council (details supplied). [4239/98]

Jack Wall

Ceist:

44 Mr. Wall asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the resignation of a member of the Council of the Insurance Ombudsman of Ireland who alleged that interference in the Ombudsman's independence and control of the Council by the board were factors in the decision of the Insurance Ombudsman to resign her job. [4093/98]

Brendan McGahon

Ceist:

45 Mr. McGahon asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the proposed resignation of the Insurance Ombudsman and the resignation of a member of the Council (details supplied). [4242/98]

Olivia Mitchell

Ceist:

54 Ms O. Mitchell asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the proposed resignation of the Insurance Ombudsman and the resignation of a member of the Council (details supplied). [4238/98]

Phil Hogan

Ceist:

94 Mr. Hogan asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the proposed resignation of the Insurance Ombudsman and the resignation of a member of the Council (details supplied). [4241/98]

John Browne

Ceist:

95 Mr. Browne (Carlow-Kilkenny) asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the proposed resignation of the Insurance Ombudsman and the resignation of a member of the Council (details supplied). [4240/98]

Tánaiste and Minister for Enterprise, Trade and Employment (Miss Harney)

I propose to take Questions Nos. 31, 39, 44, 45, 54, 72, 94 and 95 together.

The insurance ombudsman scheme was launched in October 1992 and funded by the insurance industry. To ensure the independence of the ombudsman the operation of the service was divided into three components. The first is a board comprising executives elected from those insurers taking part in the scheme. The second is a council made up of nominees from within and outside the industry. The council recruits and appoints the ombudsman, subject to the approval of the board. The third component is the office of the ombudsman itself, where policyholder disputes are referred and resolved. The member companies of the scheme are bound by the ombudsman's decisions.

The present ombudsman was appointed at the outset of the scheme in 1992. In seeking the endorsement of the then Minister for Industry and Commerce for the launch of the scheme, the industry expanded the draft terms of reference at the behest of the Minister to provide greater discretion to the ombudsman in the determination of issues in dispute between policyholder and insurer.

As documented in its recent five year review, the office of the insurance ombudsman has proved to be an outstanding success as an alternative dispute resolution mechanism. It has settled disputes and complaints by mediation and conciliation in addition to issuing written adjudications in more intractable cases. It has provided an invaluable service to the consumer and led to improved sales practices and claims handling by insurance companies participating in the scheme.

As the insurance ombudsman service is a private sector scheme it would not be appropriate for me to comment on matters related to the conditions and duration of appointment of the ombudsman. Neither would it be appropriate for me to comment on the resignation of a member of the council. My primary concern is to ensure, in the interests of the consumer, as policyholder, that whoever holds the office of ombudsman is enabled to discharge the responsibilities of that office in accordance with the terms of reference. My colleague, Deputy Noel Treacy, the Minister with responsibility for science, technology and commerce, will be meeting with the members of the council at its invitation to discuss the existing arrangements for the operation of the scheme in the light of the experience gained over the past five years and to satisfy himself that these arrangements are being operated in a way which enables the ombudsman to independently and effectively discharge the functions of the office in accordance with the terms of reference.