Insurance Act, 1964

JurisdictionIreland
CitationIR No. 18/1964
Year1964


Number 18 of 1964.


INSURANCE ACT, 1964


ARRANGEMENT OF SECTIONS

Section

1.

Definitions.

2.

Insurance Compensation Fund.

3.

Payments out of Fund in respect of certain liabilities of insolvent insurers.

4.

Grant to Fund by Minister for Finance.

5.

Advances to Fund by Minister for Finance.

6.

Contributions to Fund by insurers.

7.

Restriction on the grant of assurance licences.

8.

Amendment of section 22 of Act of 1936.

9.

Amendment of section 23 of Act of 1936.

10.

Provision in respect of existing deposits by insurers in High Court.

11.

Amendment of section 27 of Act of 1936.

12.

Purchase and sale of shares of Irish Life Assurance Company, Limited, by Minister for Finance.

13.

Construction of articles of association of Irish Life Assurance Company, Limited.

14.

Regulations.

15.

Expenses.

16.

Short title, construction and collective citation.


Acts Referred to

Courts (Supplemental Provisions) Act, 1961

1961. No. 39.

Insurance Act, 1936

1936, No. 45.

Companies Act, 1963

1963, No. 33.

Insurance (Amendment) Act, 1938

1938, No. 31.

Control of Manufactures Act, 1934

1934, No. 36.


Number 18 of 1964.


INSURANCE ACT, 1964


AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF A FUND TO BE KNOWN AS THE INSURANCE COMPENSATION FUND TO MEET CERTAIN LIABILITIES OF INSOLVENT INSURERS, TO PROVIDE FOR THE MAKING OF A GRANT AND LOANS TO THE FUND BY THE MINISTER FOR FINANCE AND CONTRIBUTIONS TO THE FUND BY INSURERS, AND FOR THOSE AND OTHER PURPOSES TO AMEND AND EXTEND THE INSURANCE ACTS, 1909 TO 1961. [7th July, 1964.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS:—

Definitions.

1.—In this Act, unless the context otherwise requires,—

“the Accountant” means the Accountant attached to the High Court by virtue of the Courts (Supplemental Provisions) Act, 1961 ;

“the Act of 1936” means the Insurance Act, 1936 ;

“the Fund” means the Insurance Compensation Fund established by section 2 of this Act;

“insurer” means an assurance company or syndicate holding an assurance licence to carry on assurance business other than life assurance business or industrial assurance business;

“the Minister” means the Minister for Industry and Commerce;

“policy” means any document or other writing by which a contract of assurance (other than a contract of re-insurance) in relation to assurance business (other than life assurance business or industrial assurance business) is made or agreed to be made or which is evidence of any such contract.

Insurance Compensation Fund.

2.—(1) There shall stand established on the day that falls one month after the date of the passing of this Act a fund to be known as the Insurance Compensation Fund.

(2) The Fund shall, subject to the provisions of this Act and any regulations thereunder, be maintained and administered under the control of the President of the High Court acting through the Accountant.

(3) (a) The Accountant may borrow for the Fund and, for the purpose of giving security with respect to such borrowing, may charge investments of the Fund.

(b) The total amount which shall at any time stand borrowed under this subsection shall not exceed one million pounds.

(4) The Accountant may invest moneys of the Fund in securities in which trustees are authorised by law to invest trust funds.

(5) The Accountant may insure against a risk relating to the Fund.

(6) The following shall be paid into the Fund:

(a) the sum paid under section 4 of this Act and any sums paid under sections 5 or 6 of this Act,

(b) interest, dividends and other income and accretions of capital arising from investments of the Fund,

(c) the proceeds of the realisation of investments of the Fund,

(d) moneys borrowed for the Fund,

(e) sums received by the Accountant under any insurance effected by the Accountant in relation to the Fund,

(f) dividends paid to the Accountant by virtue of subsection (2) of section 3 of this Act in the course of the winding up of an insurer by the High Court,

(g) other moneys belonging to or accruing to the Fund or received by the Accountant in respect thereof.

(7) The following shall be paid out of the Fund:

(a) expenses incurred in establishing, maintaining or administering the Fund,

(b) repayments of moneys borrowed for the Fund and payments of interest on such moneys,

(c) sums payable out of the Fund pursuant to section 3 of this Act,

(d) other sums properly payable out of the Fund.

(8) (a) The Accountant shall cause to be kept proper and usual accounts of moneys paid into or out of the Fund and shall, within ninety days after the end of each accounting period or such longer time as the Minister shall in any particular case allow, cause to be furnished to the Minister an abstract of the accounts of the Fund for that accounting period and a report of the administration of the Fund during that accounting period.

(b) The Minister shall cause each abstract and report furnished to him under this subsection to be published.

Payments out of Fund in respect of certain liabilities of insolvent insurers.

3.—(1) Subject to the provisions of this section, there may be paid out of the Fund to the liquidator of an insolvent insurer proceedings for the winding up of which by the High Court were commenced or are commenced on or after the 1st day of January, 1963, such amounts as may be necessary to pay any sum (other than a sum payable in respect of the refund of a premium) which is due to a person under a policy issued by the insurer in the State and is in respect of a contingency the insurance of which is required by the Act of 1936 to be effected by an insurer, together with the costs or expenses (if any) necessarily and reasonably incurred by the person in endeavouring to secure payment of the sum, and, upon receipt of the amounts by the liquidator, he shall pay to every such person the sum due to him as aforesaid together with the costs and expenses aforesaid (if any) incurred by him.

(2) Where an amount is paid out of the Fund to the liquidator of an insurer under subsection (1) of this section in respect of a sum due under a policy issued by the insurer and the costs and expenses aforesaid (if any) incurred in relation to the sum, the amount paid shall be admitted in the proceedings for the winding up of the insurer by the High Court as a proved debt of the insurer having the same priority as the sum due under the policy and the Accountant shall, as respects the amount paid out of the Fund, be a creditor of the insurer.

(3) Where a sum is due to a person under a policy by reason of a judgment obtained against the person or in respect of compensation payable by way of a weekly payment by the person under the Workmen's Compensation Acts, 1934 to 1955, the amount payable out of the Fund under subsection (1) of this section in respect of such sum shall, subject to the provisions of this section, be such amount as the Judge of the High Court having seisin of the proceedings for the winding up of the insurer by which the policy was issued may consider reasonable.

(4) Where, in respect of a sum due under a policy, a payment equal to the whole of the sum is made by the Motor Insurers' Bureau of Ireland, a payment shall not be made out of the Fund under this section in respect of the sum, and where, in respect of such a sum, a payment equal to part of the sum is made by the said Bureau, a payment out of the Fund in respect of the sum shall not exceed the amount of the sum less the amount of the payment by the said Bureau.

(5) Where sums in excess of one million pounds are due under policies issued by one insurer, not more than one million pounds shall be paid out of the Fund in respect of such sums and the payments shall be so made that in respect of each sum due under the policies the same proportion thereof is paid out of the Fund.

Grant to Fund by Minister for Finance.

4.—The Minister for Finance shall make to the Fund out of moneys provided by the Oireachtas a grant of thirty thousand pounds and the said sum shall be used for the purpose of making payments under section 3 of this Act to the liquidator of the Equitable Insurance Company, Limited.

Advances to Fund by Minister for Finance.

5.—(1) The Minister for Finance may, on the...

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