SPRING
2017 AN UPDATE ON NEW REGULATIONS PROTECTING TENANTS Thomas Carroll
ECONOMIC OUTLOOK
Dr. Constantin Gurdgiev
CAPITAL ACQUISITIONS TAX AND DISCLAIMING GIFTS/INHERITANCES Thomas Carroll
ASSISTANCE FOR IRELAND’S SMEs HOW TO AVOID A COMMUNICATION BREAKDOWN TRAVEL INSURANCE: GETTING THE BEST DEAL MEET THE TEAM
75 CELEBRATING OVER
YEARS
IN BUSINESS
TABLE OF CONTENTS An Update On New Regulations Protecting Tenants - Thomas Carroll Economic Outlook - Dr Constantin Gurdgiev Capital Acquisitions Tax and Disclaiming Gifts/Inheritances - Thomas Carroll Legal Briefs Assistance For Ireland’s SMEs How To Reduce Your Mobile Bill How To Avoid A Communication Breakdown Travel Insurance: Getting The Best Deal Business Briefs Meet The Team Range of Services
p. 3 p. 4 p. 6 p. 7 p. 8 p. 10 p. 11 p. 12 p. 14 p. 15 p. 16
Welcome to the Spring edition of our newsletter. Spring is a time for new beginnings and as such we have decided to try out a new approach to our newsletters. If you would like to see a particular area of law explained you can submit a request to us at info@mwkeller.ie. While we cannot promise that we will write a piece about each request, we will however write a piece on the most requested area of law for each newsletter. Our Newsletter has grown in popularity significantly over the last number of years and continues to do so. If you know someone for whom this publication could be of some use just let us know and we will add them to the mailing list. Our firm was established in 1941. Since then we have gained a unique insight into our clients’ needs and we have successfully adapted to the changes that have presented themselves in the legal spectrum. We strive to provide a competitive, efficient and personal service to each and every client. We have the necessary skills and resources to provide you with the legal advice and support that you need whatever your legal requirements may be. We take away the confusion from the legal process and will offer you advice in a clear and concise manner. Please feel free to contact any of our team to discuss any issues that matter to you.
AN UPDATE ON NEW REGULATIONS PROTECTING TENANTS’ RIGHTS. Thomas Carroll – MW Keller & Son, Solicitors
IN THE PAST NUMBER OF MONTHS TENANTS HAVE SEEN THEIR PROTECTIONS UNDER LANDLORD AND TENANT LAW BOLSTERED. This is in response to the housing shortage that has taken place in Dublin, Cork City and the surrounding areas and aims to protect tenants from being charged extortionate rents and being provided with inadequate accommodation facilities. Landlords always had certain duties in respect of keeping their rental properties properly maintained. Nonetheless, new regulations are to come into being from the 1st July 2017 which will impose obligations on Landlords to meet certain minimum standards (subject to certain exclusions) Some of these obligations include:
Repair The structure of the property is to be kept in good repair and the installations (supply of gas, electricity etc) of the property are to be kept in proper working order. There are also specific provisions for window safety and vermin control.
Safety IN RESPECT OF FIRE SAFETY: a fire detection system, alarm and fire blanket are to be provided and maintained. IN RESPECT OF AIR SAFETY: ventilation in bathrooms to let out water vapour from showers must be fitted and maintained. Water closets and sanitary facilities must also me maintained in a proper manner. IN RESPECT OF HEAT SAFETY: any permanently fixed appliance that emits heat has to be maintained and a carbon monoxide alarm must also be fitted and maintained.
Lighting Natural light needs to be provided for in all rooms intended for sleeping and living. Hallways and other areas of the property need to be provided with adequate artificial light. Bathrooms and rooms with a shower or toilet must be screened to ensure privacy.
RENT PRESSURE ZONES Other protections of a monetary nature are also now in place and these have been introduced as a direct consequence of the sharp increase in rents in Dublin, Cork City, Galway City, parts of Kildare, Meath, Wicklow and parts of Cork. Dublin and Cork City have been designated as Rent Pressure Zones for a period of three years from the 24th December 2016. While the remainder of the areas listed above have been designated Rent Pressure Zones for a period of three years since the 27th January 2017. What this means is that rents in these areas will only be able to rise in accordance with a set formula by a maximum of 4% annually. Further protections for tenants include an increase in the minimum amount of security of tenure that was afforded to them under the Residential Tenancies Act 2004. This act provided that once a Tenant was in occupation for a period of six months that they were then entitled to a tenancy of four years provided that a valid notice of termination was not served. The period of four years has now been increased to six years. Previously Landlords could terminate a tenancy within the first six months without reason but now they will have to provide a valid reason for the termination. Commonly it was the case that if a Landlord was selling a rental property this would be a valid reason for termination but even this reason has been curtailed under the new regulations. For more information on the above please contact:
Thomas Norris
051 877029 tom@mwkeller.ie
Michael O’Grady 051 877029 michael@mwkeller.ie
3
INFLATION’S BACK Time to Tilt Portfolios to a Defensive Stance Dr. Constantin Gurdgiev Inflation is back, folks, and the omens are poor for those who care for preserving their wealth in years ahead. Last month, the U.S. Federal Reserve proceeded to hike the benchmark target overnight interest rate by 25 basis points to a range of 0.75 percent to 1.00 percent. The move, interpreted by the markets as a sign of the Fed proceeding with its efforts to gradually return monetary policy to a more normal basis, was both anticipated and well-received by the markets. However, underneath the surface of news analysis and sellside cheerleading, the underlying U.S. data bodes poorly for the mid-term prospects of a continued bull market. Positive data coming from the U.S. economy indicates continued uneven growth across the sectors, with consumer demand still racing ahead of the household income dynamics, while corporate fundamentals remaining subdued when it comes to capital investment. The financial side of the economy is doing remarkably well, deepening the disconnection between real economic activity and the financial markets. Despite a large drop in oil prices and relatively robust inventories of gasoline, the latest Consumer Price Index (CPI) data shows inflation running at 2.7 percent y/y through February 2017, after posting a 2.5 percent reading in January. February CPI increase was the weakest since July 2016, but comes on foot of a 0.6 percentage points gain in January. All in, the CPI reading to-date is at its highest levels since March 2012. Stripping out volatile energy and food prices, core CPI rose 0.3 percentage points in January and 0.2 percentage points in February – both solid gains pushing inflation toward the levels where the Fed should feel even more comfortable with raising rates.
4
The Fed signaled three rates hikes in 2017 and is now clearly on target, in line with both inflationary pressures coming from the tight labour markets, and the expectations concerning the Trump administration’s growth-boosting fiscal stimulus and tax policies. In a way, the Fed is racing to catch up with the expectations curve. At the briefing following the last FOMC meeting, Fed Chair Janet Yellen noted that the policymakers “…have seen the economy progress over the last several months in exactly the way we anticipated.’’ Since December, jobs gains in the U.S. economy were averaging around 209,000 per month, far exceeding the rate of increases necessary to match working-age population growth. The unemployment currently sits at around 4.7 percent against the Fed projections of 4.5 percent jobless rate by the end of 2017. The financial markets indicators of inflationary pressures forward are also flashing amber alerts. Consider the U.S. break-even rates – the rates reflecting the difference between the yield on a fixed-rate bond and real yield on the Treasury Inflation-protected securities (TIPs). In theory, if inflation averages more than the break-even rate, the inflation-linked investment will outperform the fixed-rate bond. The converse happens when inflation is below the break-even rate. In 2Q 2013, as the U.S. inflation hit record lows, market expectations for inflation 10 years out from 2013 fell to 2.4 percent. The break-even rate collapsed. Since then, the break-even rates have risen steadily, although they remain relatively low by historical comparatives.
WEALTH PRESERVATION IMPERATIVE
TILTING PORTFOLIOS AWAY FROM RISING RISKS
The prospect of lifting rates means that investors should start re-gearing their portfolios toward income and capital preservation.
Which means that retail investors should be moving ahead of the curve, focusing more on capital preservation today and tilting away from the pursuit of low returns and higher risk gearing. Instead of traditional money market funds allocation, investors can do better by shifting to more active cash management and allowing for shorter-term positions to simultaneously increase their nominal returns and mitigate the cost of inflation.
Traditionally, capital preservation strategies involve allocation to fixed income (bonds), cash liquidity management funds (e.g. money market funds) and hedging assets, such as gold. As inflation gears up, the cost of these wealth management strategies will rise (with exception for gold). Higher inflationary pressures will mean investor locked in already low yield assets will face downward pressures on capital gains. Exiting their current portfolios allocations in order to re-gear for higher inflation environment will involve selling into a falling market, especially for the money funds and bonds. In other words, recent investors’ focus on higher liquidity needs tilting toward income or return generating portfolios. This presents a core dilemma for those investors, who entered the bonds and money markets funds boom late in the cycle. Based on the latest data from Marketwatch, public and private debt securities currently traded in the markets amount to some US$261 trillion, while stock markets capitalisation is at around US$88 trillion. A moderate 5 percent correction in debt valuations is likely to wipe out some US$ 17.5 trillion worth of financial wealth for institutional and retail investors. History tells us that the latter will take a heavy dose of the medicine due to less efficient portfolio monitoring, and slower and costlier trading. The ‘smart money’ investors are already betting on this. In its latest report, Knight Frank surveyed some 900 private banks and wealth advisory firms representing more than 10,000 ultra-high-net-worth investors (UHNWIs), those with assets in excess of US$30 million. Their number one concern for 2017-2018? How to protect their wealth from incoming shocks. Per the report, 66% of UHNWIs are concerned with wealth preservation, while 44% are focused on minimising short term risks.
Another set of strategies should be considered when it comes to putting your portfolio on a more defensive footing with respect to inflation. Since the end of the Global Financial Crisis, monetary policies deployed by the Central Banks around the world have eroded returns to precious metals and to risk hedging instruments, such as VIX. My recent research (based on the data through mid-March) shows that VIX and gold betas to S&P500 market have stayed consistently negative over the past 12 months. Holding a long-term stable share of portfolio in gold can provide a hedge against inflation and the long run impact of repricing the inflationary risks. Overall, improving global and U.S. growth outlooks, especially in the area of inflation and headline employment figures supports the thesis that the interest rates hikes targeted by the Fed are likely to continue through the rest of 2017. The downside (from the investors’ point of view) risk here is that the Fed might accelerate rate rises in 2H 2017, while the ECB might switch to faster tapering of its quantitative easing programmes. In fact, the week the Fed raised its rates, Ewald Nowotny, the ECB Council member, suggested that Frankfurt too might be looking at a deposit rate hike, before it fully phases out the current QE programme. If materialised, these risks can catch retail investors offguard – facing simultaneously a prospect of declining capital valuations on their debt exposures and the continued erosion of the real value of their portfolios through rising inflation. Taking a more defensive, pro-active approach to structuring cash management and debt holding today might be a prudent step toward investors preserving more of their wealth, when these risks take hold of the broader markets tomorrow.
Dr Constantin Gurdgiev is the Adjunct Assistant Professor of Finance with Trinity College, Dublin and serves as a co-founder and a Director of the Irish Mortgage Holders Organisation Ltd and the Chairman of Ireland Russia Business Association. He holds a non-executive appointment on the Investment Committee of Heniz Global Asset Management, LLC (US). In the past, Dr Constantin Gurdgiev served as the Head of Research with St Columbanus AG (Switzerland), the Head of Macroeconomics with the Institute for Business Value, IBM, Director of Research with NCB Stockbrokers Ltd and Group Editor and Director of Business and Finance Publications. He also held a non-executive appointment on the Investment Committee of GoldCore Ltd (Ireland) and Sierra Nevada College (US). Born in Moscow, Russian, Dr. Gurdgiev was educated in the University of California, Los Angeles, University of Chicago, John Hopkins University and Trinity College, Dublin.
5
CAPITAL ACQUISITIONS TAX AND DISCLAIMING GIFTS/INHERITANCES Thomas Carroll – MW Keller & Son, Solicitors
MOST PEOPLE WHO HAVE EVER RECEIVED A GIFT, INHERITANCE OR DEALT WITH A DISCRETIONARY TRUST WILL BE AWARE OF CAPITAL ACQUISITIONS TAX (HEREINAFTER CALLED CAT). THE FOCUS OF THIS ARTICLE IS TO ILLUSTRATE THE BENEFIT OF DISCLAIMERS IN RELATION TO CAT. CAT is set at a rate of 33% for gifts or inheritances and depending on the tax threshold that a person is subject to, a considerable amount of CAT may need to be paid. There are three threshold groups that are set in respect of the person giving a gift or inheritance;• Group A Threshold: This applies to children of the person giving the gift or inheritance and is set at €310,000.00.* In certain circumstances this threshold applies from children to parents. • Group B Threshold: This applies to brothers, sisters, nieces, nephews, grandchildren and in most instances parents of the person giving a gift or inheritance and is set at €32,500.00.* • Group C Threshold: This applies to anybody not included in Group A or Group B and is set at €16,250.00 * It may be the case for the purposes of tax efficiency that a person does not want to receive a gift or inheritance. This can arise where a person has already received a gift or inheritance and their threshold has been reached. Where for instance a person leaves property to their son or daughter in their Will and due to previous gifts the Group A threshold has been reached they may choose to disclaim to avoid a tax liability. In a situation where there is a Will, it should be noted that a disclaimer of an inheritance would cause it to fail and as such it would fall into the residue of the estate. This would commonly be done if the residue of an estate was left to the disclaimers own children and provided the grandchild had not already received a gift they would then have the full Group B Threshold of €32,500.00 to avail of. *Please note that these Threshold amounts are applicable as of the 12th October 2016. Different threshold amounts apply to gifts or inheritances disposed of before this date.
6
For more information on the above please contact:
Thomas Norris
051 877029 tom@mwkeller.ie
LEGAL BRIEFS
REFERENDUM TO BE HELD ON VOTING RIGHTS FOR IRISH ABROAD IN PRESIDENTIAL ELECTIONS Taoiseach Enda Kenny has confirmed that the Government will move forward with plans to hold a referendum to allow Irish citizens resident outside the state - including in Northern Ireland - the right to vote in Irish presidential elections. Mr Kenny said the decision, taken at a cabinet meeting in early March was a ‘‘clear recognition of the importance that Ireland attached to her citizens
TRAVELLER ETHNICITY RECOGNISED IN HISTORIC DÁIL STATEMENT Travellers have been recognised as a distinct ethnic group in an historic announcement. Speaking in the Dáil, Taoiseach Enda Kenny said Ireland has “implicitly recognised Travellers as having a distinct ethnic identity” for some time.
IRELAND TIPPED TO BE AT CENTRE OF LEGAL BATTLEGROUND OVER NEW EU PRIVACY LAWS Irish courts will have a central role to play when it comes to costly international disputes over privacy laws after a stringent new European data-protection directive becomes effective in May next year. Emerald de Leeuw, an Irish expert on data protection law, said the EU’s incoming General Data Protection Regulation (GDPR) is the biggest change in data protection ever to occur in Ireland. The directive, which attempts to strengthen and unify data protection laws across member states, has huge significance for Ireland because of the country’s growth as a European data centre hub for companies such as Google, Microsoft, Amazon and Apple. GDPR is the most significant overhaul of European dataprotection regulations in more than 20 years. It enforces rights for EU citizens wherever in the world they are. Under data protection laws, acquiring consent is the
wherever they were’’. The move was recommended by the Constitutional Convention in 2013 and last July the Diaspora Minister Joe McHugh said there was a commitment to hold a referendum. An options paper will be published outlining arrangements on how to register citizens abroad, and how to facilitate voting outside of Ireland. This will then be discussed during the Global Irish Civic Forum in Dublin in May. The referendum is unlikely to be held this year, and assuming it passes, would come into effect for the presidential election after the one set for 2018.
Emily Logan, Chief Commissioner of the Irish Human Rights and Equality Commission, said the move puts Ireland on a equal footing with Northern Ireland, the UK and other EU countries, as well as responding to calls from regional and international monitoring bodies for human rights and equality including the Council of Europe and the United Nations.
quick way to comply with data protection laws. But GDPR tightens this regime. It will introduce a much higher standard for consent data controllers need in order to legally handle others’ data. Business and organisations are going to need clear opt-in methods, good records of consent and simple, easy-to-access ways for people to remove consent or they will be found to be in breach of the regulation. In the most extreme cases of breaches of the regulation, organisations can be fined €20m or up to 4% of the total worldwide annual turnover of the preceding financial year, whichever is higher. DeLeeuw commented that the disputes surrounding GDPR will be fought in Ireland due to the fact that many major multinationals have bases here. Furthermore, Ireland’s role in the future of GDPR presents challenges especially around balancing potential conflicts between being a pro-business country and protecting EU citizens’ privacy rights. Companies, therefore, need to ensure that they have robust policies, procedures and processes in place to ensure compliance.
7
for
SMALL & MEDIUM ENTERPRISES In this time of uncertainty, Ireland’s Small & Medium Enterprises need a helping hand more than ever and the Irish Small and Medium Enterprises Association offers access to a variety of resources from state agencies in order to assist companies. This is just some of the support that has become available, providing diversification and growth to the sector. In the past, state agencies offered a narrow focus in terms of support, but it has grown in terms of nature, structure and design. Statistics show that Irish SMEs employ 70% of the workforce and it is widely accepted that they should be assisted as much as possible to become more resistant to economic turbulence.
The Irish Small and Medium Enterprises Association (ISME) offers a website - isme.ie - with a handy tool which provides helpful information and links to in excess of 80 governmentprovided business support tools. In addition, it provides information on employment schemes and financial support. Find out what your SME qualifies for by completing the online form at supportingsmes.ie - an initiative by the Department of Jobs, Enterprise and Innovation. By providing your industry and location and the type of assistance you require, the site will provide a list of potential supports for which you qualify. Most of the supports - advisory, practical or financial - are provided by state-aided initiatives, such as the Local Enterprise Office (LEO) and Enterprise Ireland. However, smaller area or sector specific bodies may also assist businesses in getting on their feet or reaching the next level.
8
Local Enterprise Offices act as the first port of call for new businesses and have become a key tool for small and medium enterprises taking their first steps in the business world. LEOs provide direct financial support to micro-businesses (companies with up to ten employees) who adhere to four specific criteria, in the form of grants. Amounts are based on the geographic location of the applicant businesses. Feasibility study grants of up to €15,000, or 50% of the investment, are available to companies in the eastern and southern regions. Up to 60% of the initial investment is available to companies in the western, midland and border region. LEO’s funding may be used to cover prototype innovation, consultancy costs and market research, or to provide a salary to business owners during the critical early stages of entrepreneurship. Startups may also apply for priming grants of a maximum of €150,000 or 50% of the original investment - whichever is the smaller amount during their first 18 months in business. Enterprise Ireland approval is required for grants equaling more than €40,000.
Business Expansion grants from LEO are available to SMEs that have established a firm foothold in international trade or manufacturing. This grant is also worth €150,000 or half the investment, and may cover general overheads, consultancy or marketing costs, capital items and salary costs. Unsecured loans range from €2,000 to €25,000 are available to applicants with a turnover of less than €2 million. Online trading voucher schemes were designed with SMEs who sell their products overseas in mind. These schemes offer financial support amounting to €2,500, plus advice and training to help businesses acquire the skills to trade online. Initially devised during the recent economic downturn, this scheme is aimed at helping SMEs that have been otherwise unsuccessful in securing financing from other lending institutions. However, LEOs offer several other services in addition to funding. They are uniquely placed to provide accessible support to local SMEs, pointing them in the right direction and providing training courses and mentoring assistance.
Once a business starts to grow and build, Enterprise Ireland guides them through the various stages of development. It’s High Potential Start-up (HPSU) scheme provides assistance from the early stages of development of new and innovative products and services on the international market. This scheme has the ability to generate export sales to the value of as much as €1 million in the first 3-5 years and generate ten jobs in the process. HPSU works in conjunction with Ireland’s Institutes of Technology locally to bring clients the New Frontiers Development Programme, which offers supports ranging from a €15,000 scholarship payment, to mentoring, and incubation space to accelerate business development and to provide business owners with the contacts and skills they require to successfully launch and grow a business. This programme provides a unique blend of empowering and hand-holding to sensibly support new businesses.
Enterprise Ireland does not only support new businesses. It also provides funding for established SMEs that employ 10250 people and can show an annual balance sheet of below €43 million or an annual turnover of less than €50 million. Included in these supports is a company expansion grant that incorporates a job expansion fund. Up to €150,000 of this fund can be used to recruit new staff. A €5,000 innovation voucher enables companies to work with registered knowledge providers or colleges in exploring technical problems or business opportunities. Other funding options range from business and product process improvements to management team enhancement and the development of internationalisation supports, market research and more. Enterprise Ireland recently launched a new Competitive Start-up Fund (CSF) that totals up to €750,000. The CSF supports startup activities in a variety of sectors. With so many offers available to the small and medium enterprises, there is every reason for your business to succeed.
9
HOW TO REDUCE YOUR MOBILE BILL At some point or another, we all receive a mobile bill that shocks us to the core. By becoming smarter about your smartphone use and choosing a plan that suits your needs, you can easily reduce your costs.
1
MAKE SURE YOUR PLAN MATCHES YOUR USAGE
If you are a data-heavy user and you can afford it, buy an unlimited plan that covers all your needs, or one that has a larger data allowance. There is no point to having a plan with 1 or 2 GB of data if you use a lot of data. The same applies to texts and calls. Keep an eye on your usage, because out-of-bundle costs quickly add up. Expert Tip: Use an app such as KillBiller to help you figure out the best plan for you based on your usage
2
USE OVER THE TOP (OTT) MESSAGING SERVICES TO SEND MEDIA
Most plans include a certain amount of text messages, but they usually charge extra for multimedia messages that contain photos or videos. You may end up paying between 25-70c extra, depending on your network charges. Instead, use a third-party app to send images and other multimedia messages via WiFi at home or while you are abroad.
Save Money on Your Phone Bill With Whatsapp Whatsapp is owned by Facebook and you can use it to send encrypted messages to other users. Create a contact using their phone number and send text messages, images, videos, voice notes and documents without having to worry about it being intercepted by third parties. Whatsapp is free to download on Android and iOS and can also be used on your PC’s web browser, provided your smartphone is powered on and has a data signal.
10
HOW TO AVOID A COMMUNICATION BREAKDOWN We have all been there - the infamous communication breakdown. Recovering from a communication meltdown can often be harder than avoiding it in the first place. It could happen when your agenda backfires. By the time you break away from the conversation, the tension could be cut with a knife. These conversations tend to weigh heavily on a person, adding more pressure to an already heavy workload. It’s much harder for some people to recover from a breakdown in communication, as it tends to devour much more time and emotional effort than it would’ve taken to avoid it. Since it is not always easy to ignore a person or a topic, it may help to follow these three tips to help prevent communication breakdowns.
1.
BE PRESENT
Let’s face it - life is hectic. We have more communication channels than ever and we are constantly bombarded with calls, messages and emails. During meetings, pay people the respect of putting your phone on airplane mode and turning away from your computer. If you find it hard to get out of multitasking mode, stop what you are doing a few minutes before your meeting and take a moment to meditate, do breathing exercises or a couple of quick yoga stretches.
2.
LISTEN ACTIVELY
You may not be curious initially, but try to be genuinely interested in what is being said. Listening involves paying attention to the other person’s body language. See if he or she becomes more animated during specific points. By tuning in to his or her perspective, you will be able to reach an mutually beneficial agreement. By listening more and being curious, you will be better able to navigate the conversation and frame your response. Tune into topics that stir passion in your colleague. Active listening will move your conversation forward in a more constructive manner.
3.
OPEN UP
Effective communication is merely an exchange of viewpoints and often involves opposing positions. It can be difficult to find common ground if you don’t try to see things from the other person’s perspective. To find common ground, you have to listen actively and try harder to consider the other person’s position. Sometimes, open mindedness can cause you to risk being proved wrong. The American educator, Stephen R. Covey said ‘‘Most people do not listen with the intent to understand. Most people listen with the intent to reply.’’ Do you ever find yourself thinking about your rebuttal while someone is speaking? Don’t interrupt - rather be open to the other person’s perspective. Instead of worrying about coming up with the perfect response, say that you have not given that any thought, and ask for a day or two to consider it. Being open-minded and listening attentively to others, will help cultivate trust in the long term, as they will develop a sense of psychological safety. Over time, you will realise the importance of this in building successful teams. Taking risks and speaking up may just be the difference between avoiding a mistake or learning from your experience. At the end of the day, everyone wins.
11
Travel Insurance: GETTING THE BEST DEAL It is that time of year when we start to think of our summer holidays and travel insurance is a top priority if you are a jet-setter, or an occasional traveller.
Buying a travel insurance policy may seem like a grudge buy, as most of us prefer not to anticipate that our plans may change due to an unfortunate illness or incident. However, the media is awash with reports of unexpected events that occur when we’re relaxed and unprepared. Knowing that you are covered in the event of an unfortunate event can bring a sense of peace of mind. However, many travel insurance policy buyers hand over cash without being aware of what exactly they need, and why. Below you will find top tips for buying the travel insurance you need to ensure that you are protected where it matters most.
1. READ THE FINE PRINT
Of those people who buy travel insurance, few actually read the document to find out what is covered. Finding out that they can claim much less than what they actually need can be a huge disappointment. Many policies cover cameras and iPads, but most don’t cover mobile phones, which means that you will have to replace your phone if it is damaged, lost or stolen, with no compensation from your insurance.
Sunglasses Likewise, while sunglasses are usually covered, spectacles and contact lenses are usually not covered. Be sure to report any loss or theft to a police station within 24 hours to avoid your claim being considered fraudulent.
Stolen Passport Use the safety deposit box at the hotel, as you may not be able to claim for the cost of a stolen passport. Insurers often decline claims where clients have left passports in their hotel rooms. It is advised that you take a photo of your passport on your phone, in the event that it is lost or stolen. Having photographic proof should help make it easier to apply for a new one.
Mobile Cover
Further Travel
If you’d like to cover your mobile, you can purchase an add-on to your travel insurance policy, but it may be more cost-effective to opt for an annual gadget policy, which usually covers anywhere from 90-180 days of traveling abroad. Having insured your phone does not mean that you can leave your phone unattended on the beach or in a restaurant or pub. Policies often have quirks, which means that your claim won’t be met if you were negligent.
Another issue to be aware of, is that the typical travel policy only covers you until you reach your international point of departure. Therefore, if you are catching a connecting flight from Heathrow to New York, you will be covered from Dublin to Heathrow and on to New York. But if you fly from New York to Los Angeles, for example, and miss a connecting flight, you will not be covered.
12
2. COMPLICATED CANCELLATION CLAIMS
Buying travel insurance to deal with unexpected events during a holiday, and then having to cancel the insurance due to unforeseen circumstances, can be tricky. Many policies have restrictive cancellation benefits, and some won’t meet claims for cancellations that result from injuries or illnesses that you were aware of, or by the ‘‘reasonably expected’’ death of a relative, or if you change your travel plans. Airport taxes are also usually excluded from cancellation claims, and even if you have a valid reason to cancel your multi trip policy with a start date on the first day of travel, you will not be able to claim.
3. HANDLING PRE-EXISTING MEDICAL CONDITIONS
If you have private health insurance for an existing medical condition, it is much easier to get travel insurance. Your health insurance policy will cover the first portion of the claim, which means that a screening process should not be necessary. However, if you don’t have health insurance, you will have to explain your issues. The European Health Insurance Card does cover all European travel, but it won’t cover the costs of returning you home. Therefore, you should still obtain travel insurance. Traveling abroad with a pre-existing condition may be costly, depending on the costs of healthcare in the country you’re visiting. If you’re having difficulty obtaining cover, it would be a good idea to get in touch with a relevant charity, such as the Irish Cancer Society or the Irish Heart Foundation, who may be able to steer you in the right direction. Experts advise that you obtain travel insurance as soon as you book your holiday. It will increase the cost by a fraction, but it will also offer greater protection. What protection will you need between booking and departing? Well, consider that you’re booking a summer holiday in the middle of January, but your travel insurance policy only commences on the date of departure. Should you be diagnosed with an illness in the months preceding your holiday, you will not be covered for that.
4. AGE IS JUST A NUMBER
While there are some insurers that won’t insure people over the age of 65, many still do. Age Action Ireland offers a list of insurers who do offer travel insurance to the older population. Do take into account the fact that costs do increase with age, however. Likewise, some insurers may request that you complete an online screening, and there may be a maximum eligible trip length. Some insurers have strict exclusions applicable to certain medical conditions, including coronary artery bypasses, major surgery in the last 3 months, radiotherapy and chemotherapy.
5. DOES YOUR CREDIT CARD COVER YOU?
Some banks, such as Bank of Ireland’s Platinum Advantage Mastercard cover the costs of insurance. For example, if you pay for 50% or more of your total fare with your Bank of Ireland Platinum Advantage Mastercard, you will automatically receive comprehensive multi trip travel insurance.
6. EUROPEAN HEALTH INSURANCE CARD (EHIC)
No one should travel anywhere without a free European Health Insurance Card (EHIC), which provides access to all public health services in the European Economic Area (Norway, Iceland and Liechtenstein) and European Union. You will be entitled to any of the treatments that are provided for free by the public health system in the country you’re traveling to. The card is free, and usually available within 10 days of application. It lasts for two years. If you don’t have time to apply, you may be able to obtain a temporary replacement certificate from your local health office. The card can be renewed online, at http://www.hse.ie/eng/services/ list/1/schemes/EHIC/apply a website that also offers extensive information on various European health schemes. If you need to see a doctor while in France, for example, you should find one who is conventionné. You will have to pay an upfront fee, but you will be entitled to claim back at least some of it from the Caisse Primaire d’Assurance Maladie (CPAM), including the cost of the prescription, although the process may take up to 60 days to complete.
13
BUSINESS BRIEFS SERVICES SECTOR EXPANDS AGAIN ON BACK OF NEW EXPORT BUSINESS Activity in Ireland’s services sector continues to expand with the pace of new export business jumping to its highest level in nearly a year. Investec’s latest purchasing managers’ index (PMI) for the services industry fell to 60.6
IRISH ECONOMY ON COURSE TO OUTPACE EURO ZONE FOR FOURTH YEAR IN A ROW Ireland looks set to remain the best-performing economy in the Eurozone for a fourth year in a row, despite escalating fears over Brexit. The fresh outburst of optimism follows a survey of economists by Bloomberg, which showed the consensus growth rate for 2017 has risen to 3.5% from an earlier prediction of 3.1%.
IRELAND TARGETING €26BN IN ANNUAL INDIGENOUS EXPORTS BY 2020 The Irish Government has launched its new trade strategy, Ireland Connected: Trading and Investing in a Dynamic World. This strategy is the successor to the previous Trade, Tourism and Investment Strategy, which ran from 2010 to 2015 and saw extraordinary success despite low growth in the global economy during that period. It sets ambitious targets for Ireland’s exports, foreign direct investment, tourism and international education. The new strategy aims to deepen Ireland’s economic resilience and responsiveness in the face of highly changeable global conditions by intensifying the business development activity in existing markets and diversifying into new regions. The aim is to reinforce Team Ireland’s
14
in February, but this was still well above the 50 mark that separates growth from contraction. The report showed that customer demand remains very healthy, with the rate of growth in new business once again coming in much stronger than the series average, while the pace of expansion in new export business quickened to the fastest since July 2016.
The continued influx of foreign investment, combined with soaring employment levels and robust retail sales figures have fuelled expectations the potential ill-effects of Brexit won’t be felt for at least 12 months. Eoin Fahy, chief economist of KBI Global Investors, pointed out the improving performance comes against the backdrop of a stronger global economic outlook and predicted the Irish economy could expand by 4% this year, far exceeding the Central Bank’s expectation of a 3.3% growth rate. He said while Brexit is a ‘‘definite negative’’ and likely to cause ‘‘material disruption’’, he noted that the impact of the UK’s departure from the EU may not be felt until mid 2019.
agility and capacity to respond to the dynamic global environment. The strategy hopes to generate 30,000 more jobs in tourism by 2020 and €5 billion in overseas tourism revenues by 2025. It also hopes to increase Ireland’s indigenous exports, including food, to reach €26 billion by 2020 – up by 26% from 2015. Furthermore, the strategy hopes to increase value to the economy with an uplift of 25% spend in the economy from Enterprise Ireland supported companies and a 20% uplift from IDA Ireland supported entities. With regards Brexit, the report aims to intensify and diversify 80% of indigenous export growth to 2020 to be outside of the UK market and maintain exports of at least €7.5 billion to the UK. It also hopes to secure 900 new foreign direct investments in the period 2015-2019 and to increase the number of our Irish owned companies of scale by 30% seeing a greater number exceed turnover thresholds of €3 million, €20 million and €100 million.
Thomas Norris
Michael O’Grady
managing Partner
Partner
Mr. Thomas M. Norris BCL qualified in 2002, and lives in County Waterford with his wife and two children. Thomas specialises in commercial property transactions and has extensive knowledge and experience in employment law matters, probate and administration of estates, landlord and tenant issues, banking matters and all aspects of commercial law including insolvency.
Mr. Michael O’Grady BCL qualified in 1993. Michael lives in Waterford with his wife and four children. He specialises in residential and commercial property matters, landlord and tenant issues, building law, banking, insolvency and commercial law.
Contact Thomas
Contact Michael
Direct Line: 051-840003 Email: tom@mwkeller.ie
Direct Line: 051-840002 Email: michael@mwkeller.ie
Margaret Fortune
Ian Cunningham
Partner
Solicitor
Ms. Margaret Fortune BCL qualified in 1998, and lives in County Waterford with her husband and two children. Margaret specialises in family law, personal injury (to include dealing with all aspects of the PIAB), medical negligence, debt collection and all court matters and has built up a considerable reputation in Waterford in her areas of expertise.
Ian Cunningham BCL qualified as a solicitor in 2003. Ian recently joined the Firm having previously been with a large commercial law firm in Dublin and with one of Ireland’s largest Banks. Ian specialises in banking, insolvency, commercial law, commercial and residential property matters.
Contact Margaret
Contact Ian
Direct Line: 051-840001 Email: margaret@mwkeller.ie
Direct Line: 051 840006 Email: ian@mwkeller.ie
Thomas Carroll
Steven Jacob
Trainee Solicitor
Trainee Solicitor
Thomas Carroll is a Trainee Solicitor with the firm. He is from Paulstown Co. Kilkenny and completed his LL.B. in Waterford Institute of Technology and then an LL.M. in University College Cork. Thomas will be training with Michael O’Grady and will specialise in the areas of commercial conveyancing, residential conveyancing and commercial law.
Steven Jacob began working with the Firm in February 2016 and is a Trainee Solicitor. He is from Tramore, Co. Waterford and completed his degree in Waterford Institute of Technology. Steven will be training with Thomas Norris and will specialise in the areas of conveyancing, employment law and all aspects of commercial law.
15
RANGE OF SERVICES • ACCIDENTS AND PERSONAL INJURY
• EMPLOYMENT LAW
• MEDICAL NEGLIGENCE
• FAMILY LAW
• MEDIATION AND ALTERNATIVE DISPUTE RESOLUTION
• PROPERTY TRANSACTIONS/ CONVEYANCING/ LANDLORD AND TENANT
• AGRICULTURE AND FARMING • COMMERCIAL AND CORPORATE
75 CELEBRATING OVER
8 Gladstone Street, Waterford, Co Waterford
www.mwkeller.ie
051 877029
info@mwkeller.ie
YEARS
IN BUSINESS
• WILLS, PROBATE AND TRUSTS