Third-party car insurance claims are to be met by the Insurance Compensation Fund in the event of an insurer going into liquidation.

The Ministers for Finance and Transport have approved and published a review of policy in the area.

The report also recommends that the level of compensation for third-party claims should be increased to 100% from the current rate of 65%.

The increased coverage will be funded by a direct contribution to the ICF from the car insurance industry.