Justice Kearns today approved that the Administrators of Quinn Insurance draw down of €320 million immediately from the Insurance Compensation Fund to enable the transfer of the insurance company to US insurance company Liberty Mutual. Justice Kearns has also approved the draw down of a further €418 million subject to further applications to the court.
You may recall that the Irish Government, last month, introduced legislation to impose an additional 2 per cent tax on all non-life and health insurance policies. This tax is to fund the shortfall at Quinn Insurance and will be paid to Quinn Insurance via the Insurance Compensation Fund.
Lawyers acting for Quinn Insurance said that by the Irish Taxpayer contributing €738 million from the Insurance Compensation Fund would protect policyholders being transferred to Liberty Insurance, the remaining policyholders at Quinn Insurance and the employees of Quinn Insurance.
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