TRANSPORT AND TECHNICAL SERVICES
MOTOR TRAFFIC (THIRD-PARTY INSURANCE) (JERSEY) LAW 1948
APPROVAL OF “AUTHORIZED INSURER”
Purpose of the Report
To consider an application from Zurich Insurance Ireland Limited to become an “authorized insurer” to write motor traffic insurance business in Jersey.
Background
Motor insurance policies issued in Jersey must be issued by an “authorized insurer”, which is defined in Article 4(1) of the Motor Traffic (Third-Party Insurance) (Jersey) Law 1948 as “an assurance company or an underwriter for the time being approved by the Minister”. It is the Minister’s responsibility to approve these insurers. (A copy of the relevant Article from the law is attached).
A request has been received from the Jersey Financial Services Commission (JFSC) for the Minister to consider an application from Zurich Insurance Ireland Limited to become “authorized insurer”.
Discussion
A copy of a memorandum from the JFSC’s Deputy Director-Insurance, dated 24 September 2008, is attached. The appendices to the memorandum will be available to the Minister to review when considering this report. The memorandum confirms an application from Zurich Insurance Ireland Limited to conduct motor insurance business in Jersey. It also confirms the company’s financial standing.
Confirmation has also been received that the applicant has complied with the requirements of the relevant Articles of the law.
The Deputy Director – Insurance from the JFSC is satisfied that Zurich Insurance Ireland Limited should be approved by the Minister as an authorized insurer in terms of the Motor Traffic (Third-Party Insurance) (Jersey) Law 1948.
In this particular case, it would seem that Zurich Insurance Ireland Limited has applied to carry on all classes of general insurance business in Jersey as part of a European-wide restructuring of the Zurich Group. Zurich Insurance Company (ZIC) carries out general motor insurance in Jersey under a previous approval granted in 2003. ZIC is one of the Transferor companies in the restructuring. ZIC’s motor insurance liabilities will be transferred to Zurich Insurance Ireland Limited and ZIC will cease to conduct general insurance business on completion of the Transfer Scheme.
Recommendation
The Minister is asked to approve Zurich Insurance Ireland Limited as an authorized insurer in accordance with the Motor Traffic (Third-Party Insurance) (Jersey) Law 1948.
Reason(s) for Decision
To allow Zurich Insurance Ireland Limited to replace Zurich Insurance Company as an “authorized insurer”.
Action Required
Confirm the Minister’s decision on the insurer to the Jersey Financial Services Commission.
Written by: | Alan Muir, Head of Driver and Vehicle Standards |
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Approved by: | Caroline Anderson, Director of Transport |
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Attachments: Article 4 of the Motor Traffic (Third-Party Insurance) (Jersey) Law 1948.
Memorandum (24/09/08) from the Deputy Director – Insurance, Jersey
ASM
29 September 2008
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