An Bille um Árachas Tuile, 2016 Flood Insurance Bill 2016

Transcription

1 An Bille um Árachas Tuile, 2016 Flood Insurance Bill 2016 Mar a tionscnaíodh As initiated [No. 6 of 2016]

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3 AN BILLE UM ÁRACHAS TUILE, 2016 FLOOD INSURANCE BILL 2016 Mar a tionscnaíodh As Initiated Section 1. Interpretation 2. Classification of geographical areas 3. Insurance policies 4. Policy criteria 5. Complaints 6. Procedures in relation to complaints 7. Powers to direct insurer 8. Assessment by Central Bank 9. Powers of Central Bank 10. Directions pursuant to section Appeals 12. Short title and commencement CONTENTS [No. 6 of 2016]

4 ACTS REFERRED TO Central Bank Act 1942 (No. 22) Insurance Act 1989 (No. 3) 2

5 AN BILLE UM ÁRACHAS TUILE, 2016 FLOOD INSURANCE BILL 2016 Bill entitled An Act to provide for fairness in the market for property insurance, and to provide for related matters. 5 Be it enacted by the Oireachtas as follows: Interpretation 1. In this Act affected person means a natural or legal person whether acting in the course of or in connection with carrying on business or otherwise, including a homeowner, who has an insurable interest in a property within a designated area; 10 Central Bank means the Central Bank of Ireland; Commissioners means the Commissioners of Public Works in Ireland; designated area, high flood risk area and unaffected area shall have the meanings set out in section 2; 15 Directive means Directive 2007/60/EC of the European Parliament and of the Council of 23 October 2007 on the assessment and management of flood risks; Enforcement Order shall be interpreted by reference to section 10; Financial Services Ombudsman means the independent officer established pursuant to section 57BB of the Central Bank Act 1942; 20 flood and flood risk shall have the same meaning as given in Article 3 of the Directive; insurance policy shall mean a property insurance policy which includes cover for flood damage; 25 insurer shall have the same meaning as given in the Insurance Act 1989; and unaffected person means a natural or legal person whether acting in the course of or in connection with carrying on business or otherwise, including a homeowner, who has an insurable interest in a property within an unaffected area. 3

6 Classification of geographical areas 2. In this Act (a) A geographical area shall be a designated area where either: (i) the geographical area has been designated in a flood hazard map issued by the Commissioners pursuant to Article 6 of the Directive as an area which floods with a low probability, with extreme event scenarios or with a medium probability (likely return period 100 years); or (ii) the geographical area has otherwise been designated by the Commissioners as an area which floods with a low probability, with extreme event scenarios or with a medium probability (likely return period 100 years) (b) A geographical area shall be a high flood risk area where either: (i) the geographical area has been designated in a flood hazard map issued by the Commissioners pursuant to Article 6 of the Directive as an area which floods with a high probability; or (ii) the geographical area has otherwise been designated by the Commissioners as an area which floods with a high probability. 15 (c) A geographical area shall be an unaffected area where it is not a designated area or a high flood risk area. Insurance policies 3. Where an insurer offers insurance policies in respect of properties within the State, it shall not discriminate as between affected persons and unaffected persons as regards: 20 (a) whether an insurance policy is offered; (b) the price at which an insurance policy is offered, other than to the extent reasonably justified by the current risk profile associated with a property; or (c) the terms (other than price) on which an insurance policy is offered. 25 Policy criteria 4. Where an insurer offers insurance policies in respect of properties within the State, it shall not in its dealings with an affected person: (a) unreasonably refuse to offer an insurance policy; (b) offer an insurance policy at an unreasonable price; or 30 (c) offer an insurance policy on unreasonable terms. Complaints 5. Where an affected person believes an insurer has acted contrary to section 3 or section 4 in its dealings with that affected person, the affected person may lodge a complaint with the Financial Services Ombudsman. 35 4

7 Procedures in relation to complaints 6. A complaint pursuant to section 5 shall be dealt with by the Financial Services Ombudsman in accordance with procedures issued by the Financial Services Ombudsman, which shall reflect or mirror the provisions of Part VIIB of the Central Bank Act 1942 to the extent that the Financial Services Ombudsman regards as reasonably practicable. 5 Powers to direct insurer 7. Having considered a complaint pursuant to section 5, the Financial Services Ombudsman shall have the power to direct an insurer to offer insurance to the affected person in question at such a price and on such terms as the Financial Services Ombudsman considers fair, reasonable and appropriate. 10 Assessment by Central Bank 8. The Central Bank may carry out an assessment of the manner in which an insurer deals with applications for insurance by affected persons in respect of the insurance of properties in affected areas and, without prejudice to the generality of the foregoing, such an assessment may include an assessment of the extent to which the insurer in question is acting and/or has acted in compliance with section 3 and section Powers of Central Bank 9. Having carried out an assessment pursuant to section 8, the Central Bank may issue a direction to the insurer concerned to take such steps, adopt such practices or cease such practices as it considers appropriate and necessary to ensure compliance by that insurer with section 3 and section Directions pursuant to section (1) A direction pursuant to section 9 shall state the duration for which the direction shall remain in force, which may be an indefinite period, but such a direction may subsequently be extended, varied or brought to an end by the Central Bank at any time. (2) An insurer shall comply with a direction pursuant to section 9 (or any variation of such a direction) within 28 days from the date of the direction (or variation as the case may be) and shall thereafter continue to comply with the direction until such time, if any, that it is varied or brought to an end by the Central Bank (3) Where the Central Bank believes that an insurer is in breach of subsection (2), it may apply to the High Court on notice to the insurer in question for an Enforcement Order requiring the insurer in question to comply with the relevant direction. (4) Upon hearing an application pursuant to subsection (3), the High Court shall grant an Enforcement Order requiring the insurer in question to comply with the relevant direction and to take such steps, adopt such practices or cease such practices as the High Court considers appropriate and necessary to ensure such compliance with the relevant direction if it determines that the insurer in question is in breach of the direction

8 (5) Where the High Court makes an Enforcement Order in accordance with this section, it shall impose a fine on the insurer in question in the sum of twice the amount that the court estimates the insurer derived in profits in breach of the relevant direction, unless the court determines that it would be unjust to impose such a fine, in which case it may impose a lesser fine or dispense with the requirement to impose a fine. 5 Appeals 11. Notwithstanding the provisions of the Central Bank Act 1942 or any other enactment, no appeal shall lie to the Irish Financial Services Appeals Tribunal or the High Court in respect of an assessment carried out by the Central Bank pursuant to section 8, a direction issued by the Central Bank pursuant to section 9 or a decision by the Central Bank to seek an Enforcement Order pursuant to section Short title and commencement 12. (1) This Act shall be cited as the Flood Insurance Act (2) This Act shall come into effect immediately. 6

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10 An Bille um Árachas Tuile, 2016 Flood Insurance Bill 2016 BILLE (mar a tionscnaíodh) dá ngairtear BILL (as initiated) entitled Acht do dhéanamh socrú maidir le cothroime sa mhargadh le haghaidh árachas maoine, agus do dhéanamh socrú i dtaobh nithe gaolmhara. An Act to provide for fairness in the market for property insurance, and to provide for related matters. An Teachta Micheál Mac Craith, a thug isteach, 13 Eanáir, 2016 Introduced by Deputy Michael McGrath, 13th January, 2016 BAILE ÁTHA CLIATH ARNA FHOILSIÚ AG OIFIG AN tsoláthair Le ceannach díreach ó FOILSEACHÁIN RIALTAIS, 52 FAICHE STIABHNA, BAILE ÁTHA CLIATH 2. (Teil: nó ; Fax: ) nó trí aon díoltóir leabhar. DUBLIN PUBLISHED BY THE STATIONERY OFFICE To be purchased from GOVERNMENT PUBLICATIONS, 52 ST. STEPHEN S GREEN, DUBLIN 2. (Tel: or ; Fax: ) or through any bookseller. Wt /16. Essentra. (56707). Gr