Leo Varadkar and Pearse Doherty face off over Covid-19 insurance

TÁNóiste LEO VARADKAR and the TD of Pearse Doherty from Sinn Féin have clashed in the Dáil over the recent historical case of the Covid-19 insurance.

Last week, the High Court ruled that four bar owners are entitled to be compensated by the insurer FBD for the interruption their businesses suffered due to the Covid-19 pandemic.

In Leaders’ Questions today, Doherty said there are “thousands of other companies” that have “identical policies” with the same and other insurers.

He said that, in the UK, the Financial Conduct Authority “took steps” to collect sample insurance policies and took legal action to “ensure a binding outcome for as many companies as possible”.

“Either the Central Bank intervenes as I have been asking since March, or there is going to be a wave of litigation at a cost that is too much for many small businesses,” said Doherty.

The deputy said that he has written to the governor of the Central Bank and to the Tánaiste, asking that: “the Central Bank does an examination, like the mortgage tracker.”

What does this mean? It means an audit of all business interruption insurance policies, it means intrusive supervision of claims handling, it means handling claims quickly and with the application of a strict sanctions regime.

Dohety added that the Central Bank “always had this power, it always had this role, but it refused to use it.”

Varadkar, the Tánaiste and Business Minister, said last week’s High Court decision was “very significant”, but noted that the case “is still active.”

“A decision on the amount has not yet been made and that will be adjudicated in court later this month,” he said.

Varadkar said the case “could have implications for other small businesses,” but criticized Doherty’s call to pressure the central bank to act.

“Over the past few months and even last year, you have asked the government to intervene to order the Central Bank to do something.

You don’t say those kinds of things because you are stupid, you are not a stupid man, you say those things because you expect other people to be stupid and you think they may think that the government has this power of intervention.

“I know they are looking into this, but they will make a determination, as an independent central bank should, regardless. They are not subject to any instructions from the government, and any call that you make to the government to intervene in any way or direct the Central Bank to do something is totally false. “

Pearse Doherty TD from Sinn Féin

Source: Oireachtas.ie

Doherty said Varadkar’s response was a “shocking response.” He said that he has met with representatives of the Central Bank to “provide them with documentation in relation to how insurance companies are getting out of policies.”

Doherty said that “nothing prevented a member of the Oireachtas or even a minister from sharing this type of information.”

Varadkar said that the central bank was “evaluated on this issue long before anything was done about it” and that “the government cannot run an independent regulator, like the central bank.”

“Meanwhile, the case happened, it was an important test case. I pay tribute to those who took up that case. I think it’s good that FBD has said that they will cover the cost whatever the outcome, ”he added.