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The Minister for Finance, Michael Noonan T.D., today published the Report of the Review of the Framework for Motor Insurance Compensation in Ireland. This review was carried out jointly by the Department of Finance and the Department of Transport, Tourism and Sport. It was approved by both Ministers and noted by Government on 19th July 2016.
Some of the key recommendations contained in the report are:
That coverage of the Insurance Compensation Fund will be extended to include third party motor insurance claims in the event of a liquidation of an insurer. The level of cover from the Insurance Compensation Fund for third party motor insurance claims is to be increased from 65% to 100% in line with that currently provided by the Motor Insurers’ Bureau of Ireland.
The increased coverage of the Insurance Compensation Fund will be funded by a direct contribution to the Insurance Compensation Fund from the motor insurance industry via the Motor Insurers’ Bureau of Ireland, to the value of 35% of the third party motor insurance claims.
This report when implemented will provide greater certainty in relation to the operation of the insurance compensation framework in the future. However, it should be noted that the issue of the payment of Setanta claims is still subject to legal proceedings.
The Minister for Finance Michael Noonan T.D. said;
"I am pleased that the Review of the Framework for Motor Insurance Compensation is completed and I am satisfied that, when implemented, these recommendations will provide greater certainty regarding the insurance compensation framework in Ireland. Importantly, for insured motorists this will facilitate speedier payments and a simplification of the claims procedure."
The Minister of State at the Department of Finance with responsibility for Insurance, Minister of State Eoghan Murphy T.D. said;
"I look forward to working closely with the motor insurance industry in implementing this important framework and in continuing to deliver a financially stable insurance sector which offers peace of mind at an affordable level for our citizens.”

Notes for Editors

The Report of the Review of the Framework for Motor Insurance Compensation in Ireland also contains some Transport specific measures such as the recommendation for additional data to be provided by insurers to the Minister for Transport, Tourism and Sport. That has the potential to generate significant annual savings to the Motor Insurers Bureau of Ireland as it should provide for a more robust enforcement by An Garda Síochána of uninsured driving.
Another example is the amendment of Section 78A of the Road Traffic Act 1961 in order to enable more data to be provided by insurers to facilitate Automatic Number Plate Recognition.