Vol. 196 No. 19
asked the Minister for Industry and Commerce if in view of the widespread dissatisfaction with the rate of charge for motor insurance premiums, the refusal of cover in some cases, and the imposition of special charges in other cases he will now hold a public inquiry into motor insurance generally.
20.
asked the Minister for Industry and Commerce whether his attention has been drawn to a statement made by the chairman of the Motorists' Association at the Association's annual general meeting on 21st July in which he advocated the setting up of an appeal board or controlling body to deal with prices and conditions of motor insurance; and whether he will now consider the setting up of such an appeal board or controlling body; and, if not, why.
I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 19 and 20 together.
I would refer the Deputies to the reply given to questions on this subject in Dáil Éireann on 15th February, 1962. The position has not altered since then.
Is the Minister aware that since then premiums have further increased? In addition, cases have come to light where vehicle owners have been refused cover in certain cases and charged special terms in other cases. In view of these changed circumstances, will he now consider holding a public inquiry?
I do not agree that premiums generally have increased since then. There may have been some increases in special cases where, for instance, there is an accident history.
Oh, no.
With regard to the refusal to cover, there is an obligation on insurance companies to give what we call "Act cover"—that is cover in accordance with the terms of the Road Traffic Act. Companies have certain obligations and, if they do not honour these, I have certain powers I can bring to bear on them, but I have not been asked to use these powers so far.
Surely motor insurance has increased since February last?
No. There was a question asked here in February when there was an increase. I was asked to hold an inquiry then. I did hold an inquiry within the Department and that inquiry satisfied me that insurance companies generally were losing money, some quite substantial sums in motor insurance. There has been no increase since then.
May I ask if it is not an abuse, which requires investigation, when an insurance company will accept the statutory insurance compulsory on vehicle owners only on condition that the owners will give them fire or life insurance as well? In view of the fact that such contracts have been imposed on vehicle owners by insurance companies, does the Minister not think the time has come when a full inquiry into the whole position is necessary?
The Deputy will appreciate that the time is coming when we hope to be in the Common Market. The right of establishment will then be there and these insurance companies, if they are guilty of any abuses, will have plenty of competition, more than enough competition to make them desist from them.
I am all in favour of entering the Common Market promptly and effectively by giving every support we can, but surely we are not now going to have the Common Market used as an alibi for every deficiency in our own ministerial equipment. Ministers surely are not entitled to shelter behind the Common Market and say: "Brussels will do for you what we will not do."
I am not sheltering behind it at all. If anybody makes a complaint to me, I will examine his complaint.
And if it is a condition that he should take other insurance as well, will the Minister examine that?
There is a question of other insurance being profitable. Motor insurance is not generally profitable. It is of a type that increases losses for insurance companies. I do not think it is fair for a person who gives all his other insurance to one company to give just his motor insurance to another company.
