The European Court of Justice has determined that Ireland has not fulfilled its obligations under European Law because it has failed to apply the European Union insurance legislation in its entirety to all insurance undertakings on a non-discriminatory basis.
The judgement means that Ireland is in breach of its EU obligations by maintaining in force an exemption for Vhi Healthcare from regulation by the Central Bank of Ireland. This exemption has been in existence since 1973. The decision will require Vhi Healthcare to be regulated by the Central Bank in due course.
Jimmy Tolan of Vhi Healthcare says: "This decision is not unexpected and we believe that it is a strategic imperative that the company is regulated by the Central Bank of Ireland as it is in the best interest of over 1.2 million customers and all other stakeholders including the 15,000 healthcare professionals who are directly or indirectly funded by our customers premium income. We will require additional capital in order to meet the Central Bank’s solvency capital requirements.”