Michael Ring
Ceist:143 Mr. Ring asked the Tánaiste and Minister for Enterprise, Trade and Employment the areas the Government levy on insurance premiums is spent. [13393/02]
Written Answers. - Insurance Compensation Fund Levy.
The insurance compensation fund levy was introduced by the Government on 1 January 1984, following the collapse of PMPA in 1983. The levy ceased to apply from 1 January 1993 as it was felt that sufficient funds had been collected to enable the successful completion of the administration of Primor plc – formerly known as PMPA Insurance plc.
Levies were paid by all non-life insurers at a rate of 2% of gross premium income, until 31 December 1991. The rate was reduced to 1% from 1 January 1992 to 31 December 1992. Approximately €186 million was collected by way of the levy, which is used to finance the administration of Primor plc. The administrator is continuing to run off claims incurred prior to that date under the name Primor plc.
The Government levy, which at present applies to insurance policies, is a general stamp duty, the proceeds of which go to the exchequer and not to the Insurance Compensation Fund. Any information in relation to this levy is therefore a matter for the Minister for Finance.