We wish to advise our motor insurance clients that from 1st December 2018 an additional 2% Government Levy will be applied on all motor insurance policies.
A new 2% levy will apply on all motor insurance policies from 1st December 2018. This comes from the Insurance (Amendment) Act 2018, which was signed into law in September resulting in an additional 2% levy on all motor insurance policies to be charged to a new compensation fund (the Motor Insurers Insolvency Compensation Fund (MIICF). This fund will be administered by the Motor Insurers’ Bureau of Ireland and its aim is to ensure that all third party claims will be paid in full in the event that a motor insurer goes into liquidation. It is anticipated that the additional levy will be in place for several years in order to build up the necessary reserves in this fund.
Wright Insurance Brokers are continuing to work with motor insurers to understand how they are approaching this additional levy. We will keep our customers advised of developments.
This is in addition to the existing levies on non-life insurance policies and which has been paid since 1982. There are a number of levies now applying to your motor premium;
- 3% non-life insurance premium levy paid to the Revenue Commissioners
- 2% contribution to the Insurance Compensation Fund
- 2% contribution to the Motor Insurers Insolvency Compensation Fund.
More detailed information is available via the links listed below if you would like to find out more of the background to this levy.
If you have any queries concerning the above change of levy, please contact us to speak with one of our team members.