Fianna Fáil call on Government to clarify insurance levy plans
Fianna Fáil's Michael McGrath is calling on the Government to clarify its plans for the insurance levy.
Every policy holder is paying a €2 charge since the start of the year to cover losses at Quinn Insurance through the Insurance Compensation Fund.
A Central Bank official told the High Court today that it is hoped the estimate, that it will cost €1.65bn to pay for the company's collapse, will be as bad as it gets.
McGrath has called on the Government to clarify their plans for the insurance levy.
“Last September, the Minister for Finance Michael Noonan advised Dáil Éireann that the estimated call on the Insurance Compensation Fund arising from the losses at Quinn Insurance would amount of €738m – up from the original estimate of €600m," McGrath said.
"To fund this, the Government introduced the Insurance (Amendment) Act 2011 to impose a 2% levy on all insurance policies except for health and life insurance for an indefinite period. This 2% levy took effect on 1 January 2012 and was applied, for example, to home, motor and commercial insurance policies.
“We are now advised that the cost of covering the losses at the former Quinn Insurance could possibly exceed €1.65 billion, resulting in the levy, at the present collection rate, remaining in place for 25 years or more. The Minister now needs to clarify how he intends to deal with the escalating losses from Quinn Insurance."
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