Proposed Amendments To The Insurance Compensation Fund

Author:Ms Breeda Cunningham
Profession:Dillon Eustace
 
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The Insurance (Amendment) Bill 2011 (the "Bill") which amends the Insurance Act 1964 (the "1964 Act"), was passed by the Oireachtas on the 28 September 2011. The Bill proposes to update the existing legislation relating to the Insurance Compensation Fund (the "ICF")

The main changes proposed by the Bill are:

the application of the 2% levy to the aggregate of the gross premiums paid to an insurer (the definition of which will be expanded to include an insurer duly authorised in another Member State) in respect of policies issued to cover "risks in the State" which relate to any of the following; a building in the State; a vehicle registered in the State; travel/holiday insurance taken out in the State where that policy is for a duration of 4 months or less; or any other case provided the policy holder is an individual who is habitually resident in the State or, if the policy holder is not an individual, the establishment of the policy holder to which the policy relates is in the State. However, this will not include a policy of insurance in respect of a building in another Member State or travel/holiday insurance taken out in another Member State where the risk is situated in another Member State. (ii) the dis-application of the levy to policies that do not relate to "risks in the State";

(iii) the introduction of "excluded risks", policies of insurance in respect of which will not be subjected to the levy (e.g. reinsurance, marine insurance and health insurance, amongst others will not be subjected to the levy); and

(iv) the introduction of new offences; such as the suspension of a non-paying insurers' authorisation and the creation of an offence for...

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