HC Deb 24 July 1974 vol 877 cc510-1W
Mr. Stainton

asked the Secretary of State for Trade when he will complete the drafting of new rules in accordance with his powers under the Insurance Companies Amendment Act to govern the insurance business; when he expects these regulations to come into force; and why there has been delay in concluding this matter.

Mr. Clinton Davis

The Insurance Companies Amendment Act 1973 provides for the making of a considerable number of regulations, of which several sets will be lengthy and complex. Three regulations have been made. Consultations with the insurance industry and other interested bodies are well advanced and my right hon. Friend expects to make several more sets of regulations this year, beginning with the valuation of assets in both long-term and general insurance business. It is hoped to make those regulations in September to come into effect in January 1975. Other regulations will follow as soon as possible and will come into effect at appropriate times. There has been no avoidable delay in the making of the regulations.

Mr. Stainton

asked the Secretary of State for Trade if, in the course of issuing new regulations under the Insurance Companies Amendment Act, he will confer with the British Insurance Association about assistance to policyholders following the collapse of Vehicle and General and Nation Life.

Mr. Clinton Davis

We have for some time been having discussions with representatives of the insurance industry about assistance to policyholders of insurance companies that get into difficulties. As the hon. Member knows, as a result of such discussions a number of companies have been rescued by the industry recently.