Pat Casey (Fianna Fail) | Oireachtas source

The Minister of State is very welcome. Fianna Fáil welcomes and supports this crucial Bill which will provide essential protections and ensure timely compensation for Irish motor insurance policyholders in the unfortunate event of an insurer going insolvent. The Motor Insurance Insolvency Compensation Bill 2024 is significant legislation that insures the existing insurance compensation framework within our State. By establishing a centralised compensation body, this Bill makes it easier for policyholders and injured parties to seek compensation following a motor insurance failure. This is a positive development for consumers. The Bill transposes Articles 10a and 25a of the EU directive. A key component of this Bill and the directive is the shift from a host-based to a home-based system for insurers. This means that if an insurance company based in another EU state sells into the Irish market and goes insolvent, it will be that member state's responsibility to pay. Irish policyholders will not have to bear the cost in such instances.

This Government has made significant progress in implementing insurance reform and this Bill builds on that work by further protecting motor insurance policyholders. We have seen instances in the past where insurers have failed, leaving claimants in a difficult position while liquidation processes dragged on. This important legislation ensures that injured parties will receive their just compensation in a timely manner. Ultimately, this Bill means that if policy holder has an accident and the insurer involved is insolvent, the Motor Insurers' Bureau will protect that individual and ensure that he or she receives compensation. Instead of dealing with liquidators, customers will go directly to the Motor Insurers' Bureau of Ireland which will handle these claims and ensure compensation is received. Critically, the cost of these claims will be met by the home country of the insurer, meaning that Irish insurance customers will not be footing the bill for insolvencies outside Ireland. This Bill is a positive development for anyone holding motor insurance in Ireland and is a testament to the Government's commitment to insurance reform.