asked the Minister for Industry and Commerce whether he is aware of the general dissatisfaction with the high level of motor-car insurance rates in force at present; whether he is further aware that in the case of cars whose horse-power rating has been reduced as a result of recent legislation no reduction in insurance rates has been allowed although if the horse-power rating had been increased the insurance rates would have been automatically raised; and whether, in the circumstances, he will cause a general investigation of rates to be undertaken by his Department.
Ceisteanna — Questions. Oral Answers. - Motor-car Insurance Rates.
The question of premium rates charged by insurance companies in respect of motor vehicles was the subject of an inquiry by the Prices Advisory Body in 1952, arising out of an increase of 25 per cent. On premium rates from December 1st, 1951. As a result of this inquiry, I accepted a recommendation of the Prices Advisory Body that an overall reduction of 12½ per cent. Should take effect as from December 1st, 1952, and this reduction was made by the companies.
In regard to horse-power rating, I am informed that insurance companies generally did not alter the premium rates for motor cars consequent on the revision of ratings for the purposes of road tax. Where the revised rating has resulted in a lower horse-power, the insurance premium rate has not been reduced, and, where it has entailed a higher horse power, the premium rate has not been increased. As I indicated in the Dáil on 23rd April last, I do not consider that the matter calls for my intervention.
While I accept the position that an investigation took place in 1952, I am aware that a change in the rating of horse-power for taxation purposes has been made since that investigation was carried out. In view of the fact that a considerable reduction in the rating has taken place in the case of several makes of car, would the Minister not agree that the Irish insurance companies, at least, should set good example by lowering the premiums for insurance purposes? We are all well aware that the British insurance companies want to keep certain cars out of this country. Would the Minister not agree that the Irish insurance companies should not follow the example set by the British insurance companies?
While I accept that I have responsibility in regard to the overall level of motor-car insurance premium rates, I do not think that I have responsibility for the practice of companies in regard to individual makes of cars, and I feel that to accept responsibility of that kind would be to extend the thing very widely.
Might I ask the Minister does he agree that insurance rates for cars here compare any way favourably with the insurance rates at present in operation in Great Britain, and in view of that would he not consider that the matter should be referred at least to the Irish insurance companies with a view to making a reduction if at all possible?
The rates here have to be determined by the circumstances here—the volume of business and the accident experience. The matter will be reviewed from time to time as the statistics of each year's operations are available.
Is it correct to state that the number of cars where the horse-power was increased under the new rate is negligible as compared with the number of cars where the horse-power went down?
That was not the complaint when the road tax arrangements were being altered.
Is the Minister aware that on a previous occasion when I happened to ask that question I was refused information both by the Minister and by another Minister of State?