asked the Minister for Industry and Commerce whether he is aware that, because of the operation of the average clause in insurance policies, many people fail to obtain the full sum which they were advised by their insurance company was sufficient for the adequate insurance of their property; and if he will bring in legislation providing that in future such clauses shall be null and void.
Ceisteanna—Questions. Oral Answers. - Insurance Industry.
41.
I am aware that some people fail to recover the full amount of their loss through the operation of the average clause. The effect of this clause is to put on the policy holder the obligation of insuring his property for the full amount of its value, by providing that he must bear a pro rata proportion of every claim where the property concerned is insured for an insufficient amount. This is a practice which no doubt will be considered by the Insurance Committee and I should be unwilling to reach any conclusions about it before I have seen the committee's report.
I understand that it is not the policy of insurance companies to take it on themselves to advise people as to the amount for which they should insure their property and that this is a matter for determination by the person taking out the policy.
Is the Minister saying insurance companies do not advise clients that they are under-insured?
What I said was: "I understand that it is not the policy of insurance companies to take it on themselves to advise people as to the amount for which they should insure their property."
Arising out of the Minister's reply, and with your kind permission, a Cheann Comhairle. I propose to raise this question on the Adjournment.
The Chair will communicate with the Deputy.
42.
asked the Minister for Industry and Commerce if, in view of the practice of many insurance companies to reject proposals for the renewal of insurance business by well established and reputable business firms, he will consider bringing in legislation to nationalise the insurance industry.
I do not think that it would be appropriate for me to consider any change in the structure or organisation of the industry until I receive the report of the committee of inquiry.
Has the Minister any idea when the inquiry will be completed and when we shall receive the report?
Does the Deputy realise he has another question down which I will deal with next?
It is on a different matter; it is in relation to motor insurance.
43.
asked the Minister for Industry and Commerce when the report of the Insurance Industry Committee on aspects of insurance, other than motor insurance, will be available; and if he will impress upon the committee the urgent need for making a report.
At my request, the committee is concentrating its efforts on the production of an interim report on motor insurance. Until this report is completed, the committee will not be in a position to devote attention to other classes of insurance. It is not possible, therefore, to give any indication as to when the committee's findings in regard to these other classes will be available. In view of the many aspects of the industry which will fall to be considered, the examination must be expected to take some considerable time. The committee, however, are already aware of my anxiety to have an early report and I know that they are working hard towards this objective.
Does the Minister not appreciate that in the meantime customers will have to pay through the nose?
I have already conceded in this House that I am not happy with the increases in insurance which have taken place. If I were not aware of these increases I would not have set up this committee.