VOLUNTARY HEALTH INSURANCE ACT, 1957

AN ACT TO PROVIDE FOR THE ESTABLISHMENT OF A BOARD TO BE KNOWN AS THE VOLUNTARY HEALTH INSURANCE BOARD, TO MAKE PROVISION FOR THE MAKING AND CARRYING OUT BY THAT BOARD OF SCHEMES OF VOLUNTARY HEALTH INSURANCE AND TO PROVIDE FOR MATTERS CONNECTED WITH THE MATTERS AFORESAID. [5th February, 1957.]

BE IT ENACTED BY THE OIREACHTAS AS FOLLOWS :—

1 Definitions.

1.—In this Act—

“the Board” means the Voluntary Health Insurance Board established by this Act;

“the establishment day” means the day appointed to be the establishment day for the purposes of this Act by order of the Minister made under section 2 of this Act;

“the Minister” means the Minister for Health.

2 Establishment day.

2.—The Minister may by order appoint a day to be the establishment day for the purposes of this Act.

3 Establishment of the Board.

3.—(1) There shall, by virtue of this section, be established on the establishment day a board to be styled and known as the Voluntary Health Insurance Board to fulfil the functions assigned to it by this Act.

• (2) The Board shall be a body corporate with perpetual succession and power to sue and be sued in its corporate name and to acquire, hold and dispose of land.

4 Schemes of voluntary health insurance.

4.—(1) The Board shall make and carry out a scheme of voluntary health insurance for defraying, to such extent as the Minister may from time to time specify, the cost to persons paying subscriptions to the Board in respect thereof, and to dependants of such persons, of such medical, surgical, hospital and other health services as the Minister may from time to time specify.

• (2) The Board may make and carry out such other schemes of voluntary health insurance as it may think fit, subject to the consent of the Minister in regard to the scope and extent of the benefits.

• (3) A scheme under this section may be amended by a subsequent scheme made by the Board, subject to the consent of the Minister in regard to any amendment relating to the scope or extent of benefits.

• (4) The Board shall so fix the subscriptions provided for by schemes under this section that taking one year with another the revenue of the Board from subscriptions together with its other revenues (if any) shall be sufficient, but only sufficient (as nearly as may be), after the Board has made such allowance as it thinks proper for reserves, depreciation and other like purposes, to meet the charges (including repayments of loans to the Minister) properly chargeable to revenue.

5 Constitution of the Board.

5.—(1) The Board shall consist of a chairman and such number (not being more than four) of other members as the Minister from time to time determines.

• (2) The chairman of the Board shall be that member of the Board who, at the time of his appointment to be a member of the Board or subsequently, is appointed by the Minister to be such chairman.

6 Appointment, service and remuneration of members of the Board.

6.—(1) The Minister shall, before the establishment day, appoint such number of persons (not exceeding five) to be members of the Board as he thinks fit and the term of office of every person so appointed shall commence on the establishment day, and if any such person dies before the establishment day, a vacancy shall thereby exist in the membership of the Board immediately upon its establishment.

• (2) After the establishment of the Board, the members thereof shall be appointed by the Minister from time to time as occasion requires.

• (3) The term of office of a member of the Board shall be such period, not exceeding five years, as the Minister may determine when appointing him.

• (4) A member of the Board whose term of office expires by effluxion of time shall be eligible for re-appointment.

• (5) A member of the Board shall be paid, out of funds at the disposal of the Board, such remuneration and allowances for expenses as the Minister, after consultation with the Minister for Finance, determines.

• (6) A member of the Board shall hold office on such terms (other than the payment of remuneration and allowances for expenses) as shall be fixed by the Minister at the time of his appointment.

7 Removal of members of the Board.

7.—The Minister may at any time remove a member of the Board from office.

8 Resignation and disqualification of member of the Board.

8.—(1) A member of the Board may at any time resign his office by letter addressed to the Minister and the resignation shall take effect as on and from the date of the receipt of the letter by the Minister.

• (2) A member of the Board shall be disqualified from holding and shall cease to hold office if he is adjudged bankrupt, or makes a composition or arrangement with creditors, or is sentenced by a court of competent jurisdiction to suffer imprisonment or penal servitude or ceases to be ordinarily resident in the State.

9 Disqualification of member of either House of Oireachtas for membership of Board.

9.—(1) Where a member of the Board becomes a member of either House of the Oireachtas, he shall, upon his becoming entitled under the Standing Orders of that House to sit therein, cease to be a member of the Board.

• (2) A person who is for the time being entitled under the Standing Orders of either House of the Oireachtas to sit therein shall be disqualified from being a member of the Board.

10 Disclosure by members of the Board of interest in proposed contract.

10.—A member of the Board who has—

• (a) any interest in any company or concern with which the Board proposes to make any contract, or

• (b) any interest in any contract which the Board proposes to make,

shall disclose to the Board the fact of the interest and the nature thereof, and shall take no part in any deliberation or decision of the Board relating to the contract, and the disclosure shall be recorded in the minutes of the Board.

11 Seal of the Board.

11.—(1) The Board shall as soon as may be after its establishment provide itself with a seal.

• (2) The seal of the Board shall be authenticated by the signature of the chairman of the Board or some other member thereof authorised by the Board to act in that behalf and the signature of an officer of the Board authorised by the Board to act in that behalf.

• (3) Judicial notice shall be taken of the seal of the Board, and every document purporting to be an instrument made by the Board and to be sealed with the seal (purporting to be authenticated in accordance with this section) of the Board shall be received in evidence and be deemed to be such instrument without further proof unless the contrary is shown.

12 Meetings and procedure of the Board.

12.—(1) The Board shall hold such and so many meetings as may be necessary for the due fulfilment of its functions.

• (2) The Minister may fix the date, time and place of the first meeting of the Board.

• (3) The quorum for a meeting of the Board shall, unless the Minister otherwise directs, be three.

• (4) At a meeting of the Board—

• (a) the chairman of the Board shall, if present, be chairman of the meeting,

• (b) if and so long as the chairman of the Board is not present or if the office of chairman is vacant, the members of the Board who are present shall choose one of their number to be chairman of the meeting.

• (5) Every question at a meeting of the Board shall be determined by a majority of the votes of the members present and voting on the question, and in the case of an equal division of votes, the chairman of the meeting shall have a second or casting vote.

• (6) The Board may act notwithstanding one or more vacancies among its members.

• (7) Subject to the provisions of this Act, the Board shall regulate, by standing orders or otherwise, the procedure and business of the Board.

13 Officers and servants of the Board.

13.—(1) The Board shall appoint such and so many persons to be officers and servants of the Board as the Board from time to time thinks proper.

• (2) An officer or servant of the Board shall hold his office or employment on such terms and conditions as the Board from time to time determines.

• (3) There shall be paid by the Board to its officers and servants out of funds at its disposal such remuneration and allowances as the Board determines.

• (4) The officers of the Board may, with the consent of the Minister, include a general manager whose appointment, terms of office and removal from office shall be subject to the approval of the Minister.

14 Exercise of functions of the Board through its officers or servants.

14.—The Board may exercise any of the powers and perform any of the functions and duties imposed on the Board by this Act through or by any of its officers or servants authorised by the Board in that behalf.

15 Pensions and gratuities to or in respect of officers and servants of the Board.

15.—(1) The Board may, with the approval of the Minister, make a scheme (in this section referred to as a pension scheme) for the provision of pensions or gratuities, or pensions and gratuities, for or in respect of such officers or servants of the Board as it may think fit, and any scheme so made shall be carried out by the Board.

• (2) The Board may, with the approval of the Minister, at any time by a subsequent pension scheme (in this subsection and in subsequent subsections of this section referred to as an amending scheme) amend a pension scheme or a previous amending scheme, and any such amending scheme may be expressed to operate retrospectively.

• (3) Where an amending scheme amends a pension scheme, an officer or servant to whom such pension scheme applies or applied may, within six months after the coming into operation of the amending scheme, elect not to have the amending scheme apply to him and, if he does so elect, the amending scheme shall not apply to him.

• (4) An amending scheme shall not terminate or reduce any pension which was, immediately before the coming into force of such amending scheme, payable under the scheme thereby amended.

16 Loan to Board to pay expenses of establishment and preliminary expenses.

16.—(1) The Minister may, with the consent of the Minister for Finance, lend, out of moneys provided by the Oireachtas, to the Board, upon such terms and conditions as to time and manner of repayment, rate of interest, security, and other matters whatsoever as he may think proper, a sum not exceeding twenty-five thousand pounds to be applied by the Board in or towards paying the expenses of the establishment of the Board and the preliminary expenses incurred by the Board in carrying out its functions under this Act and for no other purpose.

• (2) Sums advanced by the Minister to the Board under this section shall be repaid by the Board upon the terms and conditions laid down by the Minister with the consent of the Minister for Finance under subsection (1) of this section, and any sums so repaid shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister for Finance may direct.

17 Loan to Board to meet any initial losses.

17.—(1) The Minister may, from time to time during the period of five years commencing on the first day on which a subscription in respect of a scheme under section 4 of this Act is received by the Board, with the consent of the Minister for Finance, lend, out of moneys provided by the Oireachtas, to the Board, upon such terms and conditions as to time and manner of repayment, rate of interest, security, and other matters whatsoever as he may think proper, a sum or sums not exceeding in the aggregate twenty-five thousand pounds to be applied by the Board in or towards meeting the losses (if any) incurred by the Board during that period in carrying out its functions under this Act.

• (2) Sums advanced by the Minister to the Board under this section shall be repaid by the Board upon the terms and conditions laid down by the Minister with the consent of the Minister for Finance under subsection (1) of this section, and any sums so repaid shall be paid into or disposed of for the benefit of the Exchequer in such manner as the Minister for Finance may direct.

18 Power of the Board to borrow temporarily.

18.—The Board may borrow temporarily by arrangement with bankers such sums as it may require for the purpose of providing for current expenditure.

19 Accounts and audits.

19.—(1) The Board shall keep in such form as may be approved by the Minister, with the consent of the Minister for Finance, all proper and usual accounts of all moneys received or expended by it, including a balance sheet and income and expenditure account, and in particular shall keep in such form as aforesaid all such special accounts as the Minister may from time to time direct.

• (2) The accounts of the Board shall be audited annually by a duly qualified auditor appointed for that purpose from time to time by the Board with the consent of the Minister, and the fees of the auditors and the expenses generally of the audits shall be paid by the Board.

• (3) Immediately after audit under this section of the accounts of the Board, the Board shall send to the Minister a copy of the balance sheet and income and expenditure account as certified by the auditors and a copy of the auditors' report and shall publish and put on sale the said documents.

• (4) The Minister shall cause copies of the documents referred to in subsection (3) of this section to be laid before each House of the Oireachtas.

20 Annual report.

20.—(1) The Board shall, in each year, at such date as the Minister may direct, make to the Minister a report of its proceedings under this Act during the preceding year and the Minister shall cause copies of the report to be laid before each House of the Oireachtas.

• (2) Whenever the Minister so directs, such annual report shall also include information on such particular aspects of the Board's proceedings under this Act as the Minister may specify.

21 Furnishing of information to Minister.

21.—The Board shall submit to the Minister such information regarding its proceedings under this Act as he may from time to time require.

22 Health insurance licences.

22.—(1) The Minister may, in his absolute discretion, grant or refuse to grant to any person a licence (in this Act referred to as a health insurance licence).

• (2) The Minister may from time to time attach to a health insurance licence such conditions as he thinks proper.

• (3) Where the holder of a health insurance licence does not comply with a condition attached to the licence, he shall be guilty of an offence and shall be liable on summary conviction thereof to a fine not exceeding forty pounds together with, in the case of a continuing offence, a further fine not exceeding two pounds for every day on which the offence is continued.

• (4) Subject to the next following subsection the Minister may, in his absolute discretion, revoke a health insurance licence.

• (5) The Minister shall, at least twenty-one days in advance, give notice of his intention to revoke a licence to the holder thereof.

23 Prohibition of unlicensed health insurance business.

23.—(1) Subject to the provisions of this section, it shall not be lawful for any person to provide by means of insurance or otherwise, in consideration of the payment by any person of a subscription or premium, benefits to defray the whole or part of the cost incurred by the person paying the subscription or premium of any medical, surgical, hospital or other health service unless the person providing the benefits holds a health insurance licence for the time being in force.

• (2) Every person who acts in contravention of this section shall be guilty of an offence and shall be liable on summary conviction thereof to a fine not exceeding one hundred pounds together with, in the case of a continuing offence, a further fine not exceeding five pounds for every day on which the offence is continued.

• (3) The prohibition effected by subsection (1) of this section shall not apply in relation to—

• (a) benefits provided by the Board, a Minister of State, a trade union or a society registered in the State before the passing of this Act under the Friendly Societies Acts, 1896 to 1953, or

• (b) benefits provided under—

• (i) a contract which is attached to or dependent on a contract of assurance on human life and under which the assurer has no right of cancellation and which also provides for the payment of moneys in case of sickness, injury or disease of the insured,

• (ii) a contract of insurance under which benefits are payable in respect of sickness, injury or disease of an amount calculated by reference to the duration of the sickness, injury or disease and not to the nature or cost of any hospital, medical, surgical or other health service, provided in respect of the sickness, injury or disease,

• (iii) a contract of insurance against or otherwise in relation to any accident causing or being a contributory cause of sickness, injury or disease to the person insured thereunder or to any other person under which benefits are also payable in respect of such sickness, injury or disease, or

• (iv) a contract of insurance which was made before the passing of this Act.

• (4) This section and the next following section shall come into operation on such day as may be fixed therefor by order of the Minister.

24 Prohibition of insuring with unlicensed person.

24.—(1) It shall not be lawful for any person to pay, as consideration for the provision of benefits of the kind specified in subsection (1) of section 23 of this Act, a subscription or premium to or to accept any such benefits from a person who is acting in contravention of that section.

• (2) Every person who acts in contravention of this section shall be guilty of an offence under this section and shall be liable on summary conviction thereof to a fine not exceeding fifty pounds.

25 Non-application of Insurance Acts, 1909 to 1953.

25.—The Insurance Acts, 1909 to 1953, shall not apply in relation to—

• (a) the Board,

• (b) a person who pays a subscription to the Board,

• (c) a scheme under section 4 of this Act, or

• (d) a contract of insurance made after the passing of this Act under which insurance is provided solely against the whole or part of the cost of any medical, surgical, hospital or other health service.

26 Expenses.

26.—The expenses incurred by the Minister in the administration of this Act shall, to such extent as may be sanctioned by the Minister for Finance, be paid out of moneys provided by the Oireachtas.

27 Short title.

27.—This Act may be cited as the Voluntary Health Insurance Act, 1957.