Vol. 496 No. 4
132 Mr. Broughan asked the Tánaiste and Minister for Enterprise, Trade and Employment the steps, if any, she will take to ensure that persons with disabilities seeking motor insurance are not subjected to unfair treatment by insurers; and if she will introduce legislation to place the insurance ombudsman on a statutory basis with a remit to include fair practice for all categories of persons seeking insurance cover. [23086/98]
Assessment by insurance companies in respect of applicants for motor insurance is a matter for each individual insurance company based on its underwriting experience. Insurers contend that, on the basis of their underwriting experience, drivers with certain disabilities are likely to be a greater risk than average and, in particular, when the disabled person is a learner or young, inexperienced driver.
The subject of loadings applied to disabled drivers has been taken up by our Department on a number of occasions both with individual insurance companies and with the Irish Insurance Federation. Following referral of the subject of disability loadings to the former Motor Insurance Advisory Board it was agreed that, provided the driver remained claims free, a maximum loading of 20 per cent disability loading would apply in the first year of insurance, this would decrease to 15 per cent in the second year of claims free insurance and no loading would apply thereafter provided the driver remained claims free.
This arrangement is being operated by authorised motor insurers. It does not apply, however, in the cases of degenerative illnesses and is subject to the insurers right to call for a medical examination.
The present criteria used for assessing disabled drivers as an insurance risk is a considerable improvement on that which previously applied. Prior to the introduction of the current system, loadings ranged from 10 per cent to 150 per cent depending on the insurer in question and the nature of the disability.
Our Department is not aware of any major problems concerning the current loading system. Nevertheless, the Irish Insurance Federation has agreed to look at individual cases where the foregoing arrangement has not been observed.
The new Motor Insurance Advisory Board, which I reconstituted on 3 September last, has also discussed the situation regarding disabled motorists and I understand it will be liaising with the Disabled Drivers' Association in due course on this matter.
In relation to the second part of the Deputy's question regarding the introduction of legislation to establish the insurance ombudsman on a statutory basis, I respectfully refer him to the detailed and comprehensive reply which I gave to the House on this issue on 3 November 1998.
