Self Insuring in Ireland?

Atlantic Dawn

I know Dublin Bus and Garda vehicles self insure, law seems to imply a bond involved.


Can a normal run of the mill person self insure in this country, if so how much is required to deposit?

Peregrinus

This is dealt with by the Road Traffic Act 1961, ss. 60 to 62.

A person entitled to self-insure is an "exempted person". A regular Joe cannot do it; you have to be a statutory board or body, a state-owned company or a subsidiary of one of these. Even then, you aren't an exempted person unless you apply for and get a certificate from the Minister, and the Minister can't issue the certificate unless he or she is of the opinion that you are and will remain capable of meeting any liability arising out of the use of of a motor vehicle for which you would otherwise have to be insured, which means looking into your financial soundness and stability. As part of satisfying himself or herself about this the Minister may require you to deposit a sum in court; the amount you have to deposit is up to the Minister.

I do not know what the practice is as to whether deposits are required and, if so, how much they are. But presumably the solvency requirements imposed by the Minister are similar to those imposed on insurance companies under their regulatory regimes; otherwise state bodies permitted to self-insure might be getting either an unlawful competitive advantage or unlawful state aid or both.

coylemj

I don't think there's any legal reason why a private company can't become an exempted person. I believe you have to deposit 'and maintain' a substantial deposit with the Minister, don't think it's with the courts.

Peregrinus

coylemj wrote: »

I don't think there's any legal reason why a private company can't become an exempted person.

Road Traffic Act 1961 s. 60(1):

“exempted person” means . . .

(a) a board or other body established by or under an Act of the Oireachtas . . .

(b) a company (hereinafter referred to as a State-sponsored company) within the meaning of subsection (1) of Section 2 of the Companies Act, 1963, in which the majority of the shares are held by or on behalf of a Minister of State, or

(c) a company . . . in which the majority of the ordinary shares are held by a State-sponsored company or a board or other body mentioned in paragraph (a) of this subsection,

in respect of which the Minister has issued a certificate . . .

So, yeah, only state agencies, etc, can be exempted persons.

coylemj wrote: »

I believe you have to deposit 'and maintain' a substantial deposit with the Minister, don't think it's with the courts.

Road Traffic Act 1961 s. 61(1):

The Minister may from time to time require the deposit with the Accountant of the Courts of Justice by a person desiring to become an exempted person of such sum as the Minister shall specify in such requirement.

coylemj

Between the 1961 RTA and 1968 (when it was abolished), there was a third category of party called a 'vehicle guarantor' and that appears to have been open to individuals and companies outside the state sector.

I'm not sure how they did business but the concept apears to be that the car owner paid the guarantor money in return for him guaranteeing to pay any claims. Sounds exactly like insurance so I don't know how it worked but the 1968 RTA abolished it.

RTA 1961 (abolished by the RTA 1968) .....

59.—In this Act “vehicle guarantor” means, subject to subsection (2) of section 78 of this Act, a person who—

(a) is not a vehicle insurer, and

(b) carries on the business of issuing approved guarantees, and

(c) has made and maintains the deposit with the Accountant of the Courts of Justice authorised by this Part of this Act to be made by persons who intend to carry on the business of issuing approved guarantees,

http://www.irishstatutebook.ie/eli/1961/act/24/section/59/enacted/en/html#sec59

They had to lodge a deposit in the same way as an exempted person...

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.

GM228

coylemj wrote: »

Between the 1961 RTA and 1968 (when it was abolished), there was a third category of party called a 'vehicle guarantor' and that appears to have been open to individuals and companies outside the state sector.

I'm not sure how they did business but the concept apears to be that the car owner paid the guarantor money in return for him guaranteeing to pay any claims. Sounds exactly like insurance so I don't know how it worked but the 1968 RTA abolished it.

RTA 1961 (abolished by the RTA 1968) .....

59.—In this Act “vehicle guarantor” means, subject to subsection (2) of section 78 of this Act, a person who—

(a) is not a vehicle insurer, and

(b) carries on the business of issuing approved guarantees, and

(c) has made and maintains the deposit with the Accountant of the Courts of Justice authorised by this Part of this Act to be made by persons who intend to carry on the business of issuing approved guarantees,

http://www.irishstatutebook.ie/eli/1961/act/24/section/59/enacted/en/html#sec59

They had to lodge a deposit in the same way as an exempted person...

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.

It wasn't just any old person, they had to be either a member of the Motor Insurers' Bureau of Ireland or subject to an approved agreement with the Minister for Local Government with similar provisions to the agreement on third party liability agreed between MIBI and the Minister, that aside, they also had to make a deposit of £15,000 (nearly €400K in todays money) and only upon application to the Minister for Industry and Commerce to make such a deposit. Needless to say there were very few to do it as it was not easy.