Dáil Éireann debate -
Tuesday, 25 Jun 2002

Vol. 553 No. 5

Written Answers. - Motor Insurance.

Jerry Cowley

Question:

142 Dr. Cowley asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will introduce a fair system of motor insurance for young drivers which would amount to a no-claims bonus until the first accident to avoid the prohibitive high premiums demanded at present. [14600/02]

Charlie O'Connor

Question:

146 Mr. O'Connor asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will give assurances to those young people in Dublin south west and throughout the country, who are greatly concerned regarding the huge cost of car insurance; her views on the serious concerns in the matter; and if she will make a statement on the matter. [14644/02]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney)

I propose to take Questions Nos. 142 and 146 together.

I am very much aware of the high cost of motor insurance premiums that many young drivers are facing and of the problems this is creating for them.

The pricing and underwriting of insurance is, however, a matter for individual insurance companies. EU law prevents me and this Department from intervening in relation to the matter of premium levels or in respect of what risks they are prepared to underwrite. Insurers make decisions on provision of cover based on their assessment of that particular risk.

However, the Government intends to tackle the high costs of insurance by way of the comprehensive set of measures, which we have put forward in our Agreed Programme for Government. The Agreed Programme for Government contains a commitment to implement urgently the recommendations of the Motor Insurance Advisory Board.

The implementation group, which was set up at the end of April 2002, is making good progress on preparation of an action plan to give effect to the 67 recommendations. The action plan, which I intend to make publicly available, will contain a target timeframe for implementation of each recommendation by the Department or body concerned.

The Agreed Programme for Government also contains a commitment to establish the Personal Injuries Assessment Board. Towards that end, I expect shortly to present to the Government, in accordance with the usual procedures, the report of the interdepartmental implementation group, which I can confirm I received recently. I intend to make the report public after it has been considered by the Government.