EAMONN D. BRAIDEN,
Madam, - I read with interest the coverage in your edition of October 26th of Mary Harney's plans for reducing insurance claims and, hopefully, premiums.
I wonder if many of your readers know that the Government currently charges a tax of 2 per cent on all non-life premiums for no apparent reason. This charge had its genesis in the collapse of the ICI company in the 1980s, when it was thought appropriate for all insured to contribute to a disaster fund to offset losses incurred by such collapses.
This fund was closed in 1993, but the Government continued with the levy, now described by the Department of Trade, Employment and Tourism as "stamp duty". It is described by the insurance companies on their premium renewal notices as "Government Levy".
The money goes directly into the Government coffers and cannot be seen as anything other than a tax.
Can anyone explain why we are paying this tax? If Mary Harney would like to give me a call, I can suggest how insurance premiums can be reduced immediately by at least 2 per cent in one simple move. - Yours, etc.,
EAMONN D. BRAIDEN, Mayfield Grove, Athlone, Co Westmeath.