Jim Daly (Cork South West, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle's office for the opportunity to raise this important issue in the House this evening with the Minister. The issue does not affect most people. It does not have implications for them because, happily, they are not in flood-prone areas and they have no problem getting flood insurance cover. The Irish Insurance Federation recently informed a committee of the House that 98% of home owners are in the lucky position of being able to get flood cover. Only a minute percentage – approximately 2% - of people cannot get flood cover.

For those 2% of people who cannot get flood cover, the floods in June 2012 resulted in 1,260 claims totalling €54 million. A large number of claims were from County Cork, much of them in west Cork in the towns I represent such as Skibbereen, Clonakilty and Bandon, which all have a long and increasing struggle with floods. The towns have a history of flooding and devastation. A total of 627 households claimed a total of €15 million during a flood in 2012, which averages out at approximately €24,000 per household. Such an amount highlights the amount of damage an average house can endure during a flood event.

It is a huge trauma for an individual to have their home destroyed by water, but they have the double whammy of having to clean up their home, get the dirty, filthy brown water out of the house, have their privacy invaded, return to their home with massively increased premiums and then be denied future flood cover. People in the town of Clonakilty that I represent are literally living on their nerves since June 2012 due to the habitual flood warnings that occur. There is a flood warning every month and at this time of year it is every week. People put out sand bags but they do not have insurance. They dread the prospect of being revisited by the horror of their home being flooded.

I reiterate my call for a solidarity levy on home insurance policies. The people of this country would countenance such an idea. I expect the 98% of people who are fortunate to have home insurance would accept a levy of 1% or 2% per annum, which would amount to €8 or €10, to cover the 2% of people who are denied flood insurance by insurance companies. We have precedents in the area. In 1955 the Government led an initiative to work with insurance companies to introduce a private motor insurance scheme which offered cover for anybody who was the victim of a car accident where the parties involved were not covered by insurance. I have examined the many examples that exist, for example in the United States, where FEMA, the national flood insurance programme, operates in various states. In effect, it is a solidarity levy, which is accepted by people. In this country we recently accepted a 2% levy on health insurance policies in order to salvage the Quinn group.

I urge the Government to give serious consideration to working with the insurance companies. I am aware of the steps that have been taken to date, especially by the Minister of State, Deputy Brian Hayes, and the Office of Public Works, OPW, working with insurance companies. However, I would like to see the matter being taken a step further and for the Government to liaise with the industry to ensure an insurance scheme is introduced.

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