Government considering new insurance levy to pay for flood-hit homes

Everyone could have to pay an insurance levy to cover those who cannot buy flood cover

The Government is reportedly considering a new levy on all insurance policies to create a distress fund to help the 50,000 people who cannot buy flood cover.

According to today’s Irish Independent, the move follows 16 months of talks between the Government and the representative group, Insurance Ireland, which Environment Minister Phil Hogan said were not making any real progress.

The addition of a 1pc charge on home, motor and other policies would bring total levies on insurance products to 6pc. A special 2pc levy introduced in September 2011 to cover losses at Quinn Insurance is expected to continue for another two decades and there is also a longstanding 3pc levy on insurance products.

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