Michael McGrath (Cork South Central, Fianna Fail)
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88. To ask the Minister for Finance the reason the Insurance Compensation Fund cannot pay more frequently than once every six months; if the restriction is in primary legislation or in regulations; the specific provision or provisions that imposes this restriction; and if he will make a statement on the matter. [53468/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Deputy will be aware that under the Insurance Act 1964, as amended, monies may be paid out of the Insurance Compensation Fund (ICF), with the approval of the High Court, in relation to an insolvent insurer, to meet claims up to a limit of 65% or €825,000 of the claim, whichever is the lesser.

Section 3B(1)(a) of the Insurance Act 1964, as inserted by Section 4 of the Insurance (Amendment) Act 2011, provides that applications to the High Court may be made by the Accountant of the Courts of Justice, where the insurer in liquidation is authorised in a Member State other than Ireland, not more than once in every 6 month period.

This provision was inserted to ensure that excessive legal and administrative costs are not imposed on the ICF and to enable claims to be made in respect of a number of policyholders at a time rather than in respect of each policyholder individually.

It should be noted that heads of the Insurance (Amendment) Bill were approved by Government in July and then sent to the Office of the Parliamentary Counsel for priority drafting and to the Joint Oireachtas Committee for pre-legislative scrutiny. This legislation based on the recommendations of the Review of the Framework for Motor Insurance Compensation in Ireland will amend the relevant Insurance Acts to, inter alia, reduce the limitation on the frequency of applications to 3 month intervals. 

The proposed Bill will also provide for the transfer of responsibility for administration of the Fund from the Accountant of the High Court to the Central Bank of Ireland as well a providing for a more formal role for the State Claims Agency.  The revised arrangements will provide for a more efficient and effective compensation process in the event of a call on the ICF.