asked the Minister for Industry and Commerce what action he intends to take to deal with insurance companies who are now charging very high premiums to motor car owners and also, on renewal, making them complete new proposal forms.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
36.
I am not aware that insurance companies generally are charging very high premium rates. I have received a number of individual complaints about premium rates which appeared to be in breach of the arrangements regarding motor rates which I have made with the companies. I have had these taken up with the insurance companies concerned and have secured reductions where appropriate.
I would refer the Deputy to a reply which I gave on 17th July, 1969, in connection with excessive premium rates charged by one particular company. I stated on that occasion that I had asked the company for an undertaking that their portfolio of motor insurance policies would be reviewed and that, where appropriate, the policyholders would be informed that they were entitled to a reduction in premium rate. The company have confirmed that they have carried out this review and have reduced the premium rate in any such cases.
In the meantime I have issued instructions to two other companies to reduce rates in particular cases where a breach of the arrangements occured.
In regard to the issue of new proposal forms to policyholders, I must accept the right of insurance companies to obtain up-to-date information on the risks they insure.
The Minister might not be aware that some companies have decided to put a 200 per cent load on cars which are five years old and on drivers of less than 25 years of age. Does he think this is fair?
It is difficult to say in regard to any particular case whether what the insurance company does is fair without knowing all the facts. However, it seems to me to be unsatisfactory, to say the least, that different companies should apply many different criteria in order to arrive at the particular load that should be placed on premiums. This seems to me to be something that on the face of it is unsatisfactory and requires attention. I am inquiring into it.
Is the Minister aware that one particular company have attempted to load premiums on drivers of less than 30 years of age? In other words, they say one has to be 30 years of age to be an adult.
There are so many criteria: some companies operate on the basis of people of less than 30 years of age and some on people of more than 50 years of age. This does not seem to me to be the basis on which insurance premiums should be assessed and that is why I say it is unsatisfactory.
Is there any way in which the Minister might try to regularise this?
I am trying to do so.