Policyholders paid almost €66m in levy after Quinn Insurance collapse

Insurance policyholders last year paid out almost €66m arising from the special 2% levy imposed by Government to deal with the collapse of Quinn Insurance.

Policyholders paid almost €66m in levy after Quinn Insurance collapse

Figures provided by Finance Minister Michael Noonan show the amount paid by policy holders of home, motor and commercial insurance to the Insurance Compensation Fund increased last year by 44%, from €45.56m in 2012 to €65.69m.

In a written Dáil reply to Fianna Fáil TD Michael McGrath, Mr Noonan confirmed that a further €15m has been collected this year to the end of March 27, resulting in a total of €126.33m paid out under the levy.

In January, counsel for the joint administrators of Quinn Insurance told the High Court the administration of the firm is expected to end in 2016.

The court was told no further money will be required from the state-backed compensation fund to meet claims of Quinn policy holders this year.

Yesterday, Mr McGrath said: “This 2% insurance levy, introduced on January 1, 2012, is likely to be with us for many years to come. The Government is saying that, in the worst case scenario, the final bill for covering the losses at Quinn Insurance could possibly exceed €1.65bn.

“In that scenario, at the current rate of collection, this levy could be with us for up a quarter of a century…”

He added: “I am very concerned at the suggestion from Government that a further levy of 1% be introduced to deal with flooding issues. This would be on top of the 3% stamp duty we are all paying at the moment along with the 2% levy.

“The insurance market is essentially dysfunctional… This year we saw RSA in Ireland having to be bailed out by its UK parent. Up to 50,000 householders and businesses are unable to get a realistic quote for insurance against flood damage.

“I have repeatedly raised the need for an overhaul of the regulation of the sector with the finance minister.”

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