Oireachtas Joint and Select Committees

Thursday, 11 July 2019

Select Committee on Finance, Public Expenditure and Reform, and Taoiseach

Consumer Insurance Contracts Bill 2017: Committee Stage

Photo of Michael D'ArcyMichael D'Arcy (Wexford, Fine Gael) | Oireachtas source

There is not a statutory figure on this. This is number which has been built up as a matter of practice over a period of years. It seems to be an Irish practice and is not evident in other jurisdictions.

I do not have a final figure on it, but I have been told that it is quite arbitrary. Some companies do 30%, others do 20% and they can pick and choose as they see fit. I was of the view that when we had the opportunity to put it onto a statutory footing that we should do so. The practice is there and it does lead to the usage of correctly validated operators, quotations, invoices and correct and appropriate payments. I am fine with that. We have selected 5% on €20,000 or less because we thought it was a small amount, but as the Deputy noted, 10% over €20,000 on a very large claim is a very large amount of money. Those are the figures that we have and if the Deputy wishes to select other figures, that is a matter for him. I am not welded to 5% or 10% but those are the figures we thought were reasonable.

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