Michael McGrath
Ceist:65. Deputy Michael McGrath asked the Minister for Finance the status of the implementation of the motor insurance compensation framework announced by his Department in July 2016. [9992/17]
Amharc ar fhreagraTuesday, 28 February 2017
Ceisteanna (65)
Freagraí scríofa
The 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 was approved by Government on 19 July. Since the publication of the report, work has commenced on the implementation 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.
Additionally, the recommendation that the provisions contained in section 78A of the Road Traffic Act 1961, requiring insurers to supply details to the Minister for Transport, Tourism and Sport, be amended to provide greater clarity on what is meant by the term "details", was implemented by section 30 of the Road Traffic Act 2016. This Act has yet to be commenced.
This report when fully 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.