Dáil Éireann Debate, Tuesday - 31 March 2015
518. Deputy Michael McGrath asked the Minister for Health the position regarding health insurers insisting that policy holders who cancel their policy during the policy year pay the insurer an amount equal to the Government stamp duty levy relating to the remainder of that year; his plans to address this matter; and if he will make a statement on the matter. [13294/15]
Amharc ar fhreagraSimilar to other non-life insurance contracts, health insurance contracts generally have a duration of twelve months. I understand that current market practice for the health insurers is to apply a cancellation charge equal to the stamp duty levy to customers who cancel policies or opt to change provider mid-contract. An administration fee may also be charged.
It is a matter for the insurance companies as to the extent, if any, they pass this levy on to their customers. Provisions for the payment of the levy are contained in Section 125A of the Stamp Duty Consolidation Act 1999, and are administered by the Revenue Commissioners. The Revenue Commissioners has issued guidelines to insurers which in addition to setting out the payment verification procedures agreed with insurers, also highlight that only one levy is payable in any twelve month period for each insured person.
