Dáil Éireann Debate, Tuesday - 17 January 2017
275. Deputy Michael McGrath asked the Minister for Finance if his Department has reached agreement with the insurance industry and is proceeding to implement the recommendations of the Report of the Review of the Framework for Motor Insurance Compensation in Ireland published by his Department on 22 July 2016; and if he will make a statement on the matter. [1213/17]
Amharc ar fhreagraThe Report of the Review of the Framework for Motor Insurance Compensation in Ireland was published on 22 July. As you are aware, this review was carried out jointly by the Department of Finance and the Department of Transport, Tourism and Sport and the report was approved by Government on 19 July. Since the publication of the report, work has commenced on the implementation of a number of its recommendations, including amendments to the Insurance Acts. The necessary consultations with various stakeholders, including industry are ongoing. It is expected that a legislative proposal will be brought to Government for approval in the coming months.
Some of the key recommendations contained in the report are:
- That coverage of the Insurance Compensation Fund will be extended to include third party motor insurance claims in the event of a liquidation of an insurer. The level of cover from the Insurance Compensation Fund for third party motor insurance claims will be increased from 65% to 100% in line with that currently provided by the Motor Insurers' Bureau of Ireland.
- The increased coverage of the Insurance Compensation Fund will be funded by a direct contribution to the Insurance Compensation Fund from the motor insurance industry. While the Review indicated that this would come via the Motor Insurers' Bureau of Ireland, to the value of 35% of the third party motor insurance claims, further discussions are ongoing with industry about options for alternative funding arrangements which would provide greater predictability about their financial exposure.
This report when implemented will provide greater certainty in relation to the operation of the insurance compensation framework and it should ensure speedier payments and a simplification of the claims procedure.
