Dáil Éireann díospóireacht -
Tuesday, 30 Nov 1999

Vol. 511 No. 6

Written Answers. - Insurance Disclosure Regulations.

Michael Ferris

Ceist:

97 Mr. Ferris asked the Tánaiste and Minister for Enterprise, Trade and Employment when she will introduce the promised regulations to introduce greater transparency in the sale of insurance products; and if she will make a statement on the matter. [25023/99]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

It is vitally important to establish a sound legal base for the proposed insurance disclosure regulations. The original intention was to make the regulations under the Sale of Goods and Supply of Services Act, 1980. Legal advice suggested that a comprehensive disclosure regime, as proposed by my Department, could be vulnerable to constitutional challenge if introduced under the 1980 Act. I was therefore obliged to have recourse to enabling provisions in the Insurance Bill, 1999, setting out the principles and policies upon which the disclosure regulations would be based.

Regulations to introduce greater transparency in the sale of insurance products will be introduced by me as soon as practicable following enactment of the Insurance Bill, 1999, which is due to be published shortly. The Bill contains,inter alia, enabling measures which will allow me to introduce policyholder information requirements at point of sale and on an ongoing basis in respect of both life and non-life insurance. There are three elements to our proposals: (a) the incorporation of existing policyholder information requirements into primary legislation, in respect of life assurance policies and proposals, for legal clarity; (b) the provision of additional policyholder information requirements, including disclosure of commission payments, over and above the minimum EU requirements for life assurance; and (c) the provision of additional policyholder information requirements over and above the minimum EU requirements for non-life insurance.

Draft regulations to give effect to life insurance disclosure are being drafted within our Department and have been widely disseminated for comment by interested parties. The precise format cannot be finalised until the final enactment of the Insurance Bill.

Framework proposals in pursuance of greater transparency in non-life insurance, based on the enabling provisions of the Bill, are being prepared by our Department. We will engage in the same extensive and comprehensive consultation process shortly with interested organisations in that regard.