Michael McGrath
Ceist:89. 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. [16415/17]
Amharc ar fhreagraTuesday, 4 April 2017
Ceisteanna (89)
Freagraí scríofa
The Report of the Review of the Framework for Motor Insurance Compensation in Ireland was published on 22 July 2016. 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 2016. The Report sets out an assessment of the current framework and makes recommendations to provide certainty regarding the future regime.
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 via the Motor Insurers' Bureau of Ireland, to the value of 35% of the third party motor insurance claims.
Work is underway on the implementation of the report's recommendations, including the drafting of amendments to the Insurance Acts. As part of this process my Department has consulted with the relevant stakeholders. In particular there have been discussions with industry about options for alternative funding arrangements which would provide greater predictability about their financial exposure.
It is expected that a legislative proposal will be brought to Government for approval in the coming months.