Committee Reports > List of Committees > Dáil > 1941 > Committee of Public Accounts > Interim and Final Report - Appropriation Accounts 1939 - 1940

APPENDIX V.

CONTRACTS OF INSURANCE WITH THE IRISH EMPLOYERS’ MUTUAL INSURANCE ASSOCIATION, LTD.—REINSURANCE COVENANTS.

As promised in the course of my examination before the Committee on 1st May, 1941, I have looked further into the question of the reinsurance covenants in the contracts between the Commissioners of Public Works and the Irish Employers’ Mutual Insurance Association, Limited, and have discussed it with the Department of Finance.

Prior to 1933 there was no condition regarding reinsurance in the contracts made by the Commissioners of Public Works. No stipulation as to reinsurance was contained in the invitation to tender issued for that year; but the Association preferred the information, in relation to their quotation, that in the event of their tender being accepted the risk would be laid off at Lloyds; and as the Association was new, acceptance of its tender was made conditional on the risk being so reinsured.

The risk was reinsured under the quota Share Treaty between the Association and Lloyds’ Underwriters in accordance with this condition. Reinsurance to the extent of 100 per cent. was not stipulated by the Commissioners of Public Works, and, being contrary to insurance practice in this country, would not have been practicable.

Accounting Officer,

Office of Public Works.

3rd October, 1941.