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Dáil Éireann debate -
Wednesday, 18 Jul 1951

Vol. 126 No. 12

Ceisteanna—Questions. Oral Answers. - Insurance Practice.

asked the Minister for Industry and Commerce whether he is aware of a practice which has recently grown up whereby insurance companies in cases when accidents occur settle with the person who claims against them without consulting the other party whose car they have damaged; that their defence for this action is to reduce expenses as far as possible; further, if he is aware that the companies then increase the cost of the premiums to their clients by refusing a rebate of the "no claim bonus" and in the event of non-payment by the insured arrange that other companies will not accept the insurance; and, if so, whether, in view of this and the fact that many of their clients are in a position to prove that they are not guilty of negligence, he will have the position remedied, if necessary by the introduction of proposals for legislation.

I am not aware that it is the practice of insurance companies in the settlement of claims against them to proceed as indicated by the Deputy in the first part of his question. The information available to me does not indicate that there is in existence an arrangement between companies under which a person is prevented from transferring his business from a company which has deprived him of the "no claim bonus" and consequently the introduction of proposals for legislation as suggested by the Deputy has not been considered.

In view of the unsatisfactory nature of the Minister's reply and so that he may have the fullest information, I would like your permission, Sir, to raise the matter on the Adjournment.

The matter will be considered.

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