2% insurance levy to remain until 2037

Insurance policyholders look set to fork out for the failures of the Quinn empire until 2037, the Department of Finance has said.

A 2% levy was imposed on all non-life insurance policies in the State in an emergency move intended to cope with the collapse of the Quinn organisation, but despite generating €65m a year, it will take a quarter of a century to meet the liabilities, a spokes- person for Finance Minister Michael Noonan has confirmed.

The Insurance Compensation Fund levy was imposed to cover the expected cost of €1.65bn in meeting claims of Quinn Insurance Ltd (QIL) policyholders.