Brian Cowen (Laois-Offaly, Fianna Fail)

I move amendmentNo. 18:

In page 18, after line 15, to insert the following new section:

18.—(1) The Insurance Act 1936 is amended by repealing sections 9 and 10.

(2) The European Communities (Non-Life Insurance) Regulations 1976 (S.I. 115 of 1976) are consequentially amended by revoking paragraph (5) of Regulation 4.

(3) The European Communities (Life Assurance) Regulations 1984 (S.I. 57 of 1984) are consequentially amended by revoking paragraph (4) of Regulation 4.

As I explained in the course of the instruction to committee motion, the provisions we propose to amend have no relevance to the current business environment and should be repealed. I trust Deputies can accept the amendment. Section 9 of the 1936 Act makes it an offence for a person to effect an insurance contract with a company not in the possession of an insurance licence. Section 10 of the Act deems certain foreign companies and persons to be carrying on insurance business in Ireland in specified circumstances.

Insurance industry representatives have brought to our attention their concerns about these provisions and their negative impact on the operation of international companies in Ireland. Some of the negative impacts highlighted by industry include where a person returning to Ireland from outside the EU, but continuing to contribute to a savings product structured as a life insurance policy outside the EU, would commit an offence under section 9 as it stands.

There are difficulties for international companies that wish to, for example, put together groupwide insurance policies for professional indemnity insurance, which raises the risk of an offence being committed through the application of section 10. Section 10 has the unintended result of hampering the issuance of certain securities and excluding Irish investors from investing in securities in Ireland backed by monocline insurers. Statutory provisions of 70 years standing are precluding people from doing their business in the normal way.

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