VHI CUSTOMERS NOW FACE €50 FEE FOR SWITCHING MID-CONTRACT - The state's largest private health insurer, the VHI, has begun imposing fees on customers who cancel their insurance cover midway through the year, says the Irish Times. Since May 1st it has been charging a €50 cancellation fee to those who switch insurers midway through their 12-month contracts, and is also insisting on clawing back from them part of the annual Government levy it pays on their behalf. News of the charge emerged yesterday when the Health Insurance Authority, the industry regulator, published figures showing the number of people covered by private health insurance across the State fell by 14,000 in the first quarter of this year. This was in addition to 31,000 people cancelling their insurance policies in 2010 and 37,000 doing so in 2009. The VHI said the first day a customer takes out a health insurance policy with the company - all of which are 12-month contracts usually paid in monthly instalments - it has to pay the Government a levy on their behalf. This is currently €205 for an adult and €66 for a child and the levy cannot be recouped from the Government, even if the customer cancels their policy.
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STATE CONSIDERS PUMPING €4 BILLION INTO IRISH LIFE AND PERMANENT - The Government is considering pumping as much as €4 billion into Irish Life & Permanent at the end of July and clawing back some of the cash later in the year when the plc's life insurance business is sold. The news comes amid growing acceptance that there is a "strong possibility" that IL&P will not hit its target of selling off Irish Life Assurance by the end of July. The latest memorandum of understanding agreed with the European authorities and the International Monetary Fund clears the way for the Government to partially recapitalise IL&P in July, allowing a credit for the life insurance sale. The Irish Independent understands, however, that this option is seen as problematic since it could prejudice the sale of Irish Life Assurance by giving the market an indication of what price would be acceptable. The Government is now understood to be considering putting the entire €4 billion into IL&P at the end of July, and then clawing back the extra capital when the life insurance business is sold. A spokesman for the Department of Finance declined to comment beyond pointing to the memorandum of understanding which allows for partial recapitalisation pending the sale of Irish Life Assurance by the end of October.
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KILKENNY BIDS FOR FAR EAST INVESTMENT - Kilkenny is bidding to attract investment from the Far East as it promotes itself as a place to do business. The Kilkenny local authorities have joined forces to promote the city, claiming that average business overheads are at least 15% less than Dublin. The city also became the first in Ireland to launch a micro site in Chinese as part of a bid to attract investment from the Far East, writes the Irish Examiner. Minister for the Environment, Community and Local Government, Phil Hogan officially launched the website for the Invest Kilkenny initiative yesterday. Promoters are saying that the opening of the M9 motorway means Kilkenny is just 70 minutes from Dublin Airport, and 30 minutes from Waterford. A business support unit has been established to support the initiative and a website www.investkilkenny.ie launched, which includes a property finder and details of local business success stories. Mr Hogan said it is important that the message goes out around the world that Ireland and Kilkenny, are very much open for business.
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BAA CHAIRMAN ROBBED AT KNIFEPOINT - Sir Nigel Rudd, chairman of BAA, the airports operator, has been robbed at knifepoint of £50,000 worth of jewellery.The City figure, once renowned for his numerous directorships, and his wife were surprised by two robbers as they returned home from an evening out, writes the Financial Times. Two men wearing stockings over their heads hid near the couple's house in London's Belgravia and pounced as Mr and Mrs Rudd entered the house. Security experts said doorstep attacks on wealthy residents in upmarket London boroughs were on the increase. The raiders threatened the couple, both aged 64, with a knife before forcing the former Boots chairman, who is also chairman of Pendragon, the car dealer, and Invensys, the technology company, to open his safe. The two then fled with an estimated £50,000 worth of jewellery and a luxury watch. Police believe that the robbers deliberately targeted the wealthy residents of the area, which is also home to Roman Abramovich, Lady Thatcher and Joan Collins.
