European Court Rules Against Ireland On VHI Health Insurer
September 29 2011 - 2:10PM
Dow Jones News
The European Court of Justice ruled Thursday that Ireland is in
breach of European law by exempting the government-controlled
Voluntary Health Insurance, or VHI, the country's largest health
insurer, from oversight by the Irish central bank.
The ruling by the Luxembourg-based court will likely force the
Irish government to inject an estimated EUR338 million into VHI in
order to boost its solvency reserves to the same levels as required
of other insurers, said Tom Carney, an insurance expert at law firm
Dillon Eustace.
It may also open the Irish government to claims for damages from
health insurers Quinn Healthcare and Aviva, he said.
Government figures show VHI controls 60% of the Irish private
health insurance market, with 1.4 million subscribers.
An Irish government spokesman said it was studying the
implications of the ruling.
-By Eamon Quinn, Dow Jones Newswires, +353 1 676 2189;
eamon.quinn@dowjones.com
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