Neale Richmond (Dublin Rathdown, Fine Gael) | Oireachtas source

I move amendment No. 1:

In page 8, to delete lines 1 to 3 and substitute the following: “ “voluntary winding-up proceedings” means collective proceedings which are solvent as construed in accordance with the definition of “winding-up proceedings” in Regulation 270 of the Regulations of 2015;”.

If it pleases and is agreeable to the committee, I would like to make a more general opening statement in which I will refer to the amendments as they are laid out. They are very short remarks to give some context. While a number of members were present in the Dáil on Second Stage, not all were, and it is important for the record.

I welcome the opportunity to appear before the committee to bring the Motor Insurance Insolvency Compensation Bill 2024 through the Third Stage of the legislative process. I also look forward to constructively engaging with the committee in respect of any issues that were raised before today and on which we can provide additional clarity, following on from the Second Stage debate. As the Minister of State with special responsibility for insurance, I am tabling this Bill to transpose Articles 10a and 25a of the motor insurance Directive, as inserted by the sixth motor insurance Directive. These provisions provide for a pan-EU motor insurance framework and require all member states to have a compensation regime for motor insurance policyholders of insolvent insurance companies.

As I indicated on Second Stage, this Bill represents an important enhancement of the protection of motor insurance policyholders as it will further protect customers and injured parties when a motor insurer becomes insolvent. Importantly, it streamlines the compensation process by authorising a compensation body and legislating for prescribed timelines for the payment of compensation.

The Bill builds upon the existing complex insurance compensation framework currently in place within the State and, furthermore, complements the Government’s real progress and firm commitment in implementing insurance reform.

Following the Second Stage debate, the Department engaged in further technical examination of the Bill and consultation with stakeholders, including the Central Bank of Ireland. On foot of this, I wish to propose two targeted technical amendments to the Bill as published and as before the committee. The proposed amendments remove any doubt, first, over the policy intent of certain legislative provisions relating to voluntary winding-up proceedings and, second, over the rights the compensation body has with regard to any remaining assets of an insolvent insurer.

Before we proceed to consider the remaining sections, I thank the committee for its support and for facilitating timely consideration of the provisions within the Bill. I particularly welcome the decision by the committee, as already outlined in the Dáil, to waive pre-legislative scrutiny. We have a set of very straightforward amendments across a couple of technical sections. I am hopeful of the committee’s continuing support. I am more than happy to engage on specific sections and questions throughout the course of this session.