asked the Minister for Industry and Commerce whether he was furnished by insurance companies with evidence of increases in compensation paid to parties who suffered loss and injury in motor accidents commensurate with the premium increases now sought by the insurance companies; and, if so, if he will make such evidence available.
Ceisteanna—Questions. Oral Answers. - Motor Insurance Increases.
93.
I had available the statutory returns of the insurance companies which show figures for the total amounts of claims paid and outstanding each year under motor insurance policies. It is clear from these returns that the cost of claims has increased steeply in recent years; they represented 80 per cent of the companies' premium income in 1967, as against 57 per cent in 1964. These figures are, of course, exclusive of outgoings under other headings such as expenses of management. The figures are set out in the Report on Assurance Companies published annually by my Department. The Report is available for the years up to 1966 and that for 1967 will be published shortly.
94.
asked the Minister for Industry and Commerce if he can say whether or not the motor insurance increases will apply to all insurance companies or if any insurance companies have told him that they do not propose to apply the increased charges.
The recent increase in motor insurance premium rates was approved by me on the basis of the aggregate experience of all the companies carrying on motor insurance business in Ireland. The increase may be applied by all companies to their existing rates, but whether a particular company applies this increase in whole, in part or not at all is entirely a matter for itself to decide. No company has notified me that it does not intend to apply the increase.
95.
asked the Minister for Industry and Commerce if he will arrange for a public inquiry to be held into the necessity for motor insurance increases; and if he will make a statement on the matter.
I allowed the increase in third party rates after careful examination of the facts. As regards comprehensive rates, I am satisfied from an examination of the statutory returns and the additional information supplied to me by the insurance companies that the increase which has been made in these rates is justified and I do not regard it as necessary to hold any further inquiry in relation to that increase.
Are we to understand that the awards paid for comprehensive insurance are higher than those paid for third party insurance by as much as 50 per cent?
It does not necessarily follow that that is so. The principle on which I worked in relation to this is that third party insurance is necessary for everybody who is using motor insurance at all and that, for many people, it is all they can afford. Therefore, a stricter control should be exercised on this; and to some extent the losses incurred by the insurance companies should be carried more by the comprehensive than the third party insurance. To some extent, I said.
Could the Minister say what percentage of total insurance is third party and what percentage is comprehensive?
I could not say that offhand.