Terence Flanagan (Dublin North East, Independent)
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287. To ask the Minister for Finance the level of funds that have been generated by the non-life insurance levy to date since it was first applied in 1982; the amount paid out by the insurance compensation fund during the same period; and if he will make a statement on the matter. [12021/15]

Michael Noonan (Limerick City, Fine Gael)
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The Central Bank of Ireland has responsibility under Section 6 of the Insurance Act 1964 to assess the Insurance Compensation Fund from time to time to see if it needs financial support. Where it is of the opinion that the state of the ICF is such that financial support should be provided for it, it is allowed determine an appropriate contribution to be paid to the ICF by each insurer or insurer authorised in another EEA Member State. This is calculated as a percentage determined by the Central Bank, not exceeding 2%, of the aggregate of the gross premiums paid to the insurer or insurer authorised in another EEA Member State in respect of policies issued in respect of risks in Ireland. 

The Insurance Compensation Fund levy has been applied on two occasions and a total of €376.6 million has been collected:

- A levy of 2% of gross premium income was introduced on 1 January 1984 following the collapse of PMPA in October of the preceding year. The levy was paid by all non-life insurers at this rate until 31 December 1991 and a reduced levy of 1% applied for the period 1 January 1992 to 31 December 1992, when it was discontinued. During these 12 years €186.3 million was collected.

- In 1 January 2012 the levy was once again introduced at a rate of 2%. Since the introduction of the levy a total of €190.3 million has been collected.

In the case of the insolvency of the Insurance Corporation of Ireland a levy was not applied.  ICI, a subsidiary of Allied Irish Bank, collapsed in 1985. No levy was placed on the industry then as compensation to meet the company's liabilities was provided by a combination of AIB funding, commercial loans and State loans which have since been repaid.

The management and administration of the Insurance Compensation Fund is under the control of the President of the High Court acting through the Office of the Accountant of the Courts of Justice. All amounts paid out of the fund are subject to approval of the High Court.

The Fund has been used to fund the administration of three insurance companies.

- A balance of €164,386,901 was paid from the Fund in relation to the Insurance Corporation of Ireland.

- A balance of €139,013,808 was paid from the Fund in relation to PMPA.

- To date a total of €1,158,000,000 has been paid from the Fund in relation to Quinn Insurance Limited.

With regard to insurer liquidations, there has been a total of €29,166 paid out of the fund in relation to sums due under policies issued by Lemma Europe Insurance Company Limited (In Liquidation) in respect of risks in the Irish State.