Pearse Doherty (Donegal, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

296. To ask the Minister for Finance to provide information on the Motor Insurers Insolvency Compensation Fund (MIICF); the annual revenue into the MIICF since 2018; the rate applied each year since 2018; the total cumulative amount in the fund each year since 2018; and if he will make a statement on the matter. [3142/25]

Paschal Donohoe (Dublin Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Motor Insurers Insolvency Compensation Fund (MIICF) was established following the commencement of the Insurance (Amendment) Act 2018 (the 2018 Act). It is funded by contributions from those insurers who provide motor insurance in Ireland. Before the establishment of the MIICF, in the event of an insurance provider becoming insolvent, the maximum compensation that could be provided was 65% of the compensation due to the victim through the Insurance Compensation Fund (ICF). Following its establishment, the MIICF effectively functions as a source of bridging funding in those circumstances, enabling the victim to receive 100% of the applicable compensation.

As outlined in the 2018 Act, the MIICF was designed to build up a balance of approximately €200 million, of which monies will be invested until such time as the funds are called upon by the ICF to meet claims. The MIICF is managed and administered by the Motor Insurers Bureau of Ireland (MIBI) – a not for profit organisation whose principal role is to compensate the victims of road traffic accidents caused by uninsured and unidentified vehicles.

The following figures, which are submitted to me annually by the Motor Insurers Bureau of Ireland, are laid before the Houses of the Oireachtas and published annually on my Department's website in the Annual Report on the Motor Insurers Insolvency Compensation Fund.

In accordance with section 3D(5) of the Insurance Act 1964, the MIBI will submit the MIICF Annual Report for the year ended 31st December 2024 not later than 31 July 2025, which will subsequently be laid before the Oireachtas. This report will include the audited figures for 2024.

Annual Revenue

The following table sets out the annual revenue (i.e. financial contributions and investment income) received into the MIICF each year for the years 2018 to 2023:

Contribution Rate

In accordance with section 3G of the Insurance Act 1964, a 2% rate was applied for gross written motor insurance premiums between 2018 and 2023. This rate was reduced to 1% in 2024 after the total value of the fund exceeded €150m. The rate for 2025 is 0%.

Cumulative value of the MIICF

The following table sets out the cumulative value of the MIICF each year for the years 2018 to 2023: