Need to investigate the sudden increase in insurance costs for CE schemes
6 October 2015
by Cllr Joe Costello
Speaking in the Dáil on CE Scheme Insurance Costs Topical Issue
I welcome this opportunity to discuss the increased insurance costs being faced by CE schemes. These alarming costs have a serious impact on the approximately 23,000 people on these schemes throughout the country.
As the Minister will know, the supervisors of these CE schemes are receiving quotes for insurance that are three times higher this year than in previous years. This is the case even for CE schemes that have not made a claim in many years or at all. The Dublin Adult Learning Centre has seen its insurance quote increase from €1,250 to €3,750. It has had no claim in the entire period of its existence.
The CE schemes have been advised by the Department of Social Protection to get quotes from three insurance companies. However, there appears to be only one company, Allianz, currently providing most of the cover. The CE schemes have no control over this increased cost. To date, the only option open to CE schemes is to pay the increased costs out of their existing Materials’ Budget. Clearly, the enormous increase in insurance costs will have a knock on effect on the services that are provided by these schemes.
Normally the insurance premium is paid from the Materials Grant. An increase in the Materials Grant would be helpful. But it is unprecedented that an increase of this magnitude be imposed in one fell swoop. The Department of Social Protection must engage with Allianz and the wider insurance industry to ensure that other companies operate in the area of CE schemes thus creating competition and, secondly, they must determine why such an extraordinary increase is being imposed across the board.