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The Minister for Finance, Paschal Donohoe TD, yesterday signed the Commencement Order for the Consumer Insurance Contracts Act 2019.
This Commencement Order brings the majority of the provisions of the Consumer Insurance Contracts Act into operation from today, 1st September 2020, with some exceptions.
Taking account of the administrative burdens and the impact on systems, the Minister has decided that insurers will have one year to prepare to implement the sections relating to pre-contractual information and renewals (i.e. Sections 8, 9, 12, 14(1)-(5)) before these sections are commenced on 1 September 2021.
The Commencement Order sets out the following:
(i) The 1st day of September 2020 is appointed as the day on which the Act shall come into operation, other than subsection (4) of section 18, and the provisions of sections 8, 9 and 12 and subsections (1) to (5) of section 14.
(ii) The 1st day of September 2021 is appointed as the day on which sections 8, 9 and 12 and subsections (1) to (5) of section 14 of the Act shall come into operation.
Speaking today, the Minister for Finance, Paschal Donohoe TD said:
"The majority of the Consumer Insurance Contracts Act 2019 will come into operation from today, September 1st.. This Act gives effect to the recommendations of the Law Reform Commission in their 2015 Report on Consumer Insurance Contracts, and will address many of the long-standing challenges that people and small businesses in Ireland have faced with their experience of insurance policies and insurance claims.
The separate commencement date of the 1st September 2021 for the sections 8, 9, 12, 14(1)-(5) will provide insurers with a further year to make the necessary preparations to implement the provisions of the Act that will have the biggest impact on their systems, which relate to changes to pre-contractual information and the provision of further information to consumers when renewing their policies.
My decision to implement the Act on a phased basis is in recognition of the significant impact some aspects of this Act has on insurers’ operations. I believe the timeline set out in the Commencement Order is a balanced one and an appropriate way forward for industry and consumers alike.
I thank Deputy Pearse Doherty TD who sponsored the original Bill and Senator Michael D’Arcy, the former Minister of State for Financial Services who worked on ensuring its passage through the Oireachtas. The passage of this consumer focused legislation through the Oireachtas is a testament to the cross-party support on insurance legislation. The need for further insurance reform is recognised in the Programme for Government and, the newly established Cabinet Committee on Economic Recovery and Investment, chaired by the Tánaiste, Leo Varadkar TD, will prioritise insurance reform through an all of Government approach.
Minister of State for Financial Services, Sean Fleming TD, said:
“Insurance reform cannot be achieved by an overnight solution, instead it can best be improved through the cumulative impact of a series of changes and the Consumer Insurance Contracts Act is another step in this regard.
This Act is a substantial reform of insurance contract law and I believe that this Act will go some way in strengthening the relationship between the insurance industry and Irish consumer.
Insurance reform is recognised in the Programme for Government and Minister Donohoe and I look forward to working with the Tánaiste, Ministerial colleagues and all stakeholders on insurance related commitments going forward.
ENDS