Pat Gallagher (Donegal South West, Fianna Fail)

The Minister for Finance has informed the Dáil that most low value policies are not yet computerised, so that if insurance companies had to personally notify these customers, it would entail a lengthy and substantive trawl of paper records. Considering the value of such policies, this does not seem worthwhile at this time. A balance must be reached between the aim of reuniting people with their money and not placing an undue administrative burden on the institutions, especially as the costs involved will only be passed on to the consumer.

The full burden of keeping track of a policy should not lie solely with the institutions, and the individual must also take responsibility. The Department has been negotiating this Bill for some time and the industry has already begun preparing for its onset. Since publication of the Bill, the companies concerned have already been attempting to identify policies valued at or above €500. To lower the threshold below €500 would, I understand, cause significant problems for the industry.

There is nothing to prevent the companies from writing to all their policyholders or doing so more than once, which is likely to happen in any case. This year alone, there will be no less than four public advertisements placed regarding this scheme, two by the insurance industry, one on behalf of the banks and building societies and one on behalf of An Post. This should bring the scheme well within the public mindset.