Own Insurance Company:

Neewbie_noob

This is a genuine question:

Would I be allowed to set up my own insurance company and only insure myself under it for, say, €50 and have 10g's sitting in the bank as a pay out fund and if it's never needed, then a well and good, I can just withdraw the moneys and happy days.

Genuine question btw.

L1011

Its entirely legal, search for "captive insurer" to see how its done.

However, the capital requirements for an insurer in Ireland are a lot higher than a "10g's". We're either using or close to using the EU Solvency II rules, which are available online but aren't the easiest to understand. Its definitely not going to be an easy or cheap way around car insurance for a single vehicle; businesses that have captive insurers would usually have multi-thousand vehicle fleets.

You can also post a bond and drive without insurance, the value of this bond is at the discretion of the Minister for Transport and would likely be at least six figures. Dublin Bus do this, as an example.

Neewbie_noob

MYOB wrote: »

Its entirely legal, search for "captive insurer" to see how its done.

However, the capital requirements for an insurer in Ireland are a lot higher than a "10g's". We're either using or close to using the EU Solvency II rules, which are available online but aren't the easiest to understand. Its definitely not going to be an easy or cheap way around car insurance for a single vehicle; businesses that have captive insurers would usually have multi-thousand vehicle fleets.

You can also post a bond and drive without insurance, the value of this bond is at the discretion of the Minister for Transport and would likely be at least six figures. Dublin Bus do this, as an example.

I'm 21, male and driving a 1.4L car my fee per year, fully comp is €716.42 c. So I guess it's not that necessary to avoid :P

coylemj

Neewbie_noob wrote: »

I'm 21, male and driving a 1.4L car my fee per year, fully comp is €716.42 c. So I guess it's not that necessary to avoid :P

If it's motor insurance you're talking about, you can apply to the minister (used to be Industry & Commerce) to be an 'exempted person'. It involves lodging a large amount of money which would be outside what a private individual could manage but if you were a company with a large fleet like Guinness or CRH it's probably an option to consider, they may even do it for all I know.

The amount was set at £15,000 in the 1961 Road Traffic Act, it's now variable and decided on a case by case basis by the minister.

61.—(1) A person (other than a vehicle insurer) who intends to carry on the business of issuing approved guarantees or who desires to become an exempted person may deposit and thereafter keep deposited with the Accountant of the Courts of Justice the sum of fifteen thousand pounds.

(2) The Accountant of the Courts of Justice shall invest a sum deposited under this section in such of the securities authorised by law for the investment of funds in the High Court as the depositor directs, and the income accruing on the securities shall be paid to the depositor.

(3) The Accountant of the Courts of Justice shall not accept a deposit under this section save on a warrant of the Minister for Industry and Commerce.

(4) The Minister for Industry and Commerce may make rules with respect to applications for warrants for the purposes of this section, the payment of deposits and the investment thereof or dealing therewith, the deposit of stocks, shares or other securities in lieu of money, the payment of the income from time to time accruing on securities in which deposits are for the time being invested and the withdrawal and transfer of deposits.

http://www.irishstatutebook.ie/1961/en/act/pub/0024/sec0061.html#sec61

marketty

Sean Quinn tried this craic and now we're all playing a levy for it