On Dec. 6, IRE GVT consulted on contributions to compensation fund.
IRE GVT published a public consultation on the exercise of ministerial powers under section 26 of Motor insurance insolvency compensation act 2024 (MIICA 2024 (IRE)).
Follows IRE GVT May 2024 insurance insolvency compensation bill, see #214301.
Background
The Motor Insurance Directive (MID Dir 2009/103/EC) ensures that vehicles can freely circulate in the EU while using a minimum harmonized level of insurance cover.
So when accidents happen, injured parties compensated via reciprocal insurance cover.
The Sixth MID (Dir 2021/2118) amends MID by inserting articles providing for a pan-EU motor insurance framework and requires all member states to have in place a compensation regime for motor insurance policyholders of insolvent insurers.
Ireland
Before this, the Insurance Compensation Fund (ICF) framework in Ireland operated on a host-based system, meaning compensation in the context of insolvent insurers is paid from the member state in which the insured risk is located.
However, changes from Sixth MID require it must be funded on home-based system.
Means that home country of insurer bears cost of claims in the event of insolvency.
MIICA 2024 (IRE) transposes this change, enhances Ireland's existing domestic legal framework for ICF for motor insurance insolvency so potential Irish claimants can deal directly and efficiently with the national compensation body appointed under the Act.
Consultation
MIICA 2024 (IRE) authorizes Minister of Finance to prescribe, by way of regulations requirements for insurers (domestic) which carry on motor 3rd party liability insurance in other member states as regards contribution to the compensation fund.
IRE GVT invites interested parties to make submissions in relation to the contributions to the fund made by motor insurers regarding; the scope of the proposed regulations; the form of the contribution; and the target level of funding.
Effectiveness
The closing date for submission of responses to consultation is Dec. 24, 2024.
Regulators
IRE GVT
Entity Types
CNSM; Ins
Reference
CP 12/6/2024; Citation: MIICA 2024 (IRE); MID Dir 2009/103/EC; Dir 2021/2118;
