Seán Fleming (Laois-Offaly, Fianna Fail)
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260. To ask the Minister for Jobs, Enterprise and Innovation the number of motor vehicles in the possession of his Department or agencies of his Department that do not hold an insurance policy; the manner in which insurance claims arising in respect of vehicles in the possession of his Department or its agencies are handled; the amount of insurance claims paid on behalf of his Department in each of the past five years; and if he will make a statement on the matter. [16047/14]

Richard Bruton (Dublin North Central, Fine Gael)
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Neither my Department nor the Offices of my Department are in possession of any motor vehicles.

No insurance claims in relation to motor vehicles have been paid on behalf of my Department over the past five years. Any personal injury or third party property damage claims made against my Department are managed by the State Claims Agency (SCA).

Public Financial Procedures, Department of Finance, 2008 defines indemnities as “agreements to compensate bodies or individuals for loss or damage arising” and states that: “The general rule is that no insurance should be effected against the risk of any loss which, if it arose, would fall wholly and directly on public funds. This is based on the understanding that the risks for which the Government is liable are innumerable and widely distributed, and that losses maturing in any one year are never so large as to materially disturb the financial position of the year, so that it is cheaper in the long term for the Exchequer to ‘carry its own insurance’ ”.

Similarly, in respect of vehicles owned by delegated state bodies, in compliance with Public Financial Procedures there is no commercial insurance policy in place. However a state indemnity applies. Where a State indemnity applies, i.e. the State bears its own insurance, a commitment is made to protect against losses should any loss or damage arise where the State was negligent. Typically a particular indemnity is enacted through an instrument of legislation.

State indemnity for personal injury and third party property damage is set out in the National Treasury Management Agency (Amendment) Act, 2000 where the management of personal injury and third party property damage claims against certain State authorities, and underlying risks, was delegated to the National Treasury Management Agency (NTMA). When performing these functions, the NTMA is known as the State Claims Agency (SCA).

Should a claim arise relating to personal injury and/or third party property damage arising from an incident involving property owned or managed by my Department this is handled by the SCA. Should a claim arise relating to damage to a State vehicle the cost will be borne by the State body/Department.

This relates to bodies delegated to the SCA under National Treasury Management Agency (Amendment) Act, 2000 and subsequent orders only and not all state funded or associated enterprises.

Finally, I have asked the Agencies of my Department to respond directly to me on this matter and I will write to the Deputy with the details, if any, in due course.