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.
What is the MIICF?
From December 1st a 2% contribution will be collected from all motor insurer premiums generated to directly fund the MIICF. 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.
The MIICF rate of contribution is anticipated to remain for seven years, which is the timeframe considered necessary to build up the necessary reserve fund totalling €200 million. Once fully funded, the rate is expected to reduce to zero percent.
If you have any questions regarding the MIICF please don’t hesitate to contact us on 01 448 48 48.