Stealth tax to pay for Quinn losses

CONSUMERS face a further hike in insurance costs on a day when data reveals Ireland is still one of the most expensive countries in Europe.

The Government was accused of rolling out another stealth tax last night — which could hit consumers for more than a decade — in order to plug losses at Quinn Insurance.

The 2% levy on insurance for consumers will help finance a fund to cover policies in cases where an insurer is unable to meet liabilities. It is expected that over €700 million will be needed from the new Insurance Compensation Fund to cover losses at Quinn Insurance, the Department of Finance said as it announced the charge.