'Quinn levy' cost policy holders €65m
Published 04/04/2014 | 02:30
INSURANCE policy holders last year paid out a total of €65.69m arising from the special 2pc levy imposed by the Government to deal with the collapse of Quinn Insurance.
Figures provided by Finance Minister Michael Noonan show that the amount paid by policy holders of home, motor and commercial insurance to the Insurance Compensation Fund (ICF) rose last year by 44pc from €45.56m in 2012 to €65.69m.
In a written Dail response to Fianna Fail's spokesman on finance, Michael McGrath, Minister Noonan confirmed that a further €15m had been collected this year to the end of March 27, resulting in a total of €126.33m paid out under the levy.
In January, counsel for the joint administrators of Quinn Insurance told the High Court that the administration of Quinn Insurance was expected to end in 2016.
The court was told that no further money would be required from the state-backed ICF to meet claims of Quinn policy holders this year.
Yesterday, Mr McGrath said: "This 2pc insurance levy – introduced on 1 January, 2012 – is likely to be with us for many years to come.
"The Government is saying that, in the worst case scenario, the final bill for covering the losses at Quinn Insurance could possibly exceed €1.65bn. In that scenario – at the current rate of collection – this levy could be with us for up a quarter of a century," he said.