Seanad debates

Thursday, 13 February 2003

Unclaimed Life Assurance Policies Bill 2002: Committee Stage (Resumed) and Remaining Stages.

 

SECTION 17.

Debate resumed on amendment No. 11:

In page 19, subsection (2), between lines 33 and 34, to insert the following new paragraph:

"(f) the making of all reasonable efforts to identify unclaimed policies.".

–(Senator J. Phelan).

10:30 am

Photo of John Paul PhelanJohn Paul Phelan (Fine Gael)
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As this is the last amendment, we probably could have concluded Committee Stage last night. I have already spoken briefly on the amendment. Section 17(2) states:

Each insurance undertaking shall furnish a certificate of compliance to the regulatory authority, not later than one month after the end of each financial year, in the form and manner that the regulatory authority may specify, stating, if this is the case, that the insurance undertaking has complied with this Act in respect of the following.

It then lists four items with which undertakings must be in compliance. The amendment seeks to add an additional item to that list – that the undertakings make every reasonable effort to identify unclaimed policies.

The amendment is of fundamental importance as its addresses the key element of protecting the right of the individual to claim previously unclaimed policies. As it would not damage the legislation in any way, I urge the Minister of State to accept it.

Photo of Frank FaheyFrank Fahey (Galway West, Fianna Fail)
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I apologise for my late arrival. Section 17 provides that the certificate of compliance will be signed off by a duly authorised officer of the institution and state the register of unclaimed policies has been properly maintained. The register will contain a great deal of detail about the institution's unclaimed policies, for example, the dates on which notices were sent to policyholders, the dates on which the policies were deemed unclaimed and all details regarding claims from the dormant fund in respect of a given policy. Therefore, if the register is properly maintained and this is certified by the authorised officer, all reasonable efforts must have been made by the institution to identify unclaimed policies.

I draw the attention of the Senator to sections 8(3) and 9(6) which provide that it is an offence for an undertaking not to give notice to the holders of an unclaimed policy in accordance with the respective sections. The introduction of an additional obligation under different terminology in the context of the certificate of compliance could give rise to uncertainty as to what exactly was the obligation on companies in this regard. It could, for instance, be regarded as inferring the need for the institutions to take steps beyond the stringent measures already laid down in the Bill.

The proposal would provide little or no added value, given that what one institution considers reasonable may not be considered reasonable by another. It would also result in a disparity between the provisions for credit institutions under the 2001 Act and those for insurance undertakings. The requirements of the register, combined with the offence provisions in relation to the notice to policyholders, should serve to reassure on this matter. For this reason, I do not propose to accept the amendment.

Amendment, by leave, withdrawn.

Section 17 agreed to.

Sections 18 to 27, inclusive, agreed to.

Schedule 1 agreed to.

Amendments Nos. 12 and 13 not moved.

Schedule 2 agreed to.

Title agreed to.

Bill reported without amendment and received for final consideration.

Question proposed: "That the Bill do now pass."

Photo of Frank FaheyFrank Fahey (Galway West, Fianna Fail)
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I thank all the Senators who have contributed to this interesting debate, in which many pertinent issues were raised. The debate in this House has contributed to this excellent legislation. For far too long policies and accounts which have lain dormant have been of no benefit to anybody other than the insurance companies in which they are held. The companies concerned will now divest themselves of dormant accounts, thus making money available to benefit the community at large through community and social programmes. It is also noteworthy that a significant sum is being and will be reclaimed by consumers through this and previous legislation.

This has been a good day's work. I thank, in particular, officials of the Department of Finance who have been most helpful and provided us with exceptional legislation. I also thank the Minister for Finance, Deputy McCreevy, who, unfortunately, could not attend the debate as he is abroad. I thank Senators for passing the Bill.

Photo of John Paul PhelanJohn Paul Phelan (Fine Gael)
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I thank the Minister of State for coming to the House today and spending most of yesterday afternoon with us. I thank his colleague, the Minister of State at the Department of the Environment and Local Government, Deputy Gallagher, who also attended the debate. I agree that this is important and worthwhile legislation. I am glad the Minister for Finance has consulted the Attorney General and is considering the group of amendments discussed yesterday.

Photo of Martin ManserghMartin Mansergh (Fianna Fail)
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I thank the Minister of State and officials of the Department of Finance for carrying through this legislation, which is important from the point of view of consumers and the community at large. I hope the proceeds of the dormant accounts will be used for worthwhile projects, some of which we discussed yesterday.

Question put and agreed to.