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2% Motor Insurers' Insolvency Compensation Fund charge

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  • 21-03-2020 9:33pm
    #1
    Pops_20
    Registered Users Posts: 707 ✭✭✭


    My renewal letter from Liberty Insurance arrived for my car. €759, down from €769 last year. Not much of a difference, as per usual. But at least it has gone down this time.

    However, I noticed a new 2% levy has been added since last year.

    "2% Motor Insurers Insolvency Compensation Fund charge".

    The total levy on my policy is now 7% (3% government levy + 2% Insurance Compensation Fund charge + 2% mentioned above).

    I found this article online, but that states it was introduced in 2018.

    https://www.irishtimes.com/news/politics/oireachtas/insurance-policies-to-be-hit-with-2-levy-for-next-seven-years-1.3563301

    Can anyone shed some light on why I am getting hit with this charge now?
    Both 2% charges have a very similar name!


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    #2
    biko
    Registered Users Posts: 81,223 ✭✭✭✭biko


    In short, if your insurer goes belly up you are not without cover.

    https://www.allianz.ie/blog/your-car/motor-insurers-insolvency-compensation-fund.html
    Over recent weeks and months there has been on-going discussions and coverage in the media regarding a new charge that will apply to all motor insurance premiums. The resulting outcome is the establishment of the Motor Insurers’ Insolvency Compensation Fund (MIICF) which comes into effect from 1st December 2018.

    The purpose of the MIICF is to build up a reserve fund, administered by the Motor Insurers’ Bureau of Ireland (MIBI), to ensure that outstanding policyholder claims can be met in the event that a motor insurer goes into liquidation.


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    #3
    El Gato De Negocios
    Registered Users Posts: 6,696 ✭✭✭El Gato De Negocios


    Pops_20 wrote: »
    My renewal letter from Liberty Insurance arrived for my car. €759, down from €769 last year. Not much of a difference, as per usual. But at least it has gone down this time.

    However, I noticed a new 2% levy has been added since last year.

    "2% Motor Insurers Insolvency Compensation Fund charge".

    The total levy on my policy is now 7% (3% government levy + 2% Insurance Compensation Fund charge + 2% mentioned above).

    I found this article online, but that states it was introduced in 2018.

    https://www.irishtimes.com/news/politics/oireachtas/insurance-policies-to-be-hit-with-2-levy-for-next-seven-years-1.3563301

    Can anyone shed some light on why I am getting hit with this charge now?
    Both 2% charges have a very similar name!

    It was introduced in 2018 but didnt have to come into effect until I think April or May 2019 which is why you didnt have to pay it last year. Some insurers delayed its application and took the hit themselves with paying it.


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