asked the Minister for Industry and Commerce if, further to a reply of 17th June, 1971, he will state what has been the outcome of his correspondence with an insurance firm in connection with substantial increases made by them in insurance premiums.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
32.
Although the correspondence referred to by the Deputy has not yet been finalised, more detailed statistics recently supplied by the insurance company concerned suggested that cars garaged in the area to which the increase applies do present a greater risk to this company than cars garaged in other parts of the country. It was on the basis of these statistics that the company considered itself justified in applying an area loading.
As I mentioned in answer to the Deputy's question on 17th June last, the question of area loadings has been the subject of correspondence between my Department and a number of insurance companies. I consider that the area loading applied by any one company should not be considered in isolation but in the light of the level of and justification for area loadings applied by insurance companies generally.
The Minister will recall that in my original question on this matter I asked him about the 17½ per cent increase that was allowed plus the 20 per cent loading increase for the Dublin area and the compulsory £4 to £5 premium for personal belongings. Is the Minister aware that clients of this particular company to which I referred have been informed since, and prior to my putting down the question, that in any correspondence or any consultations they had with the Minister, he did not even once raise the question of this loading charge for the Dublin area? Will the Minister state now whether he has raised this question or is this company suffering under a delusion because it has been raised generally and not specifically with them because they have informed their clients that the question of the special loading for the Dublin area has never once been raised by the Minister with this firm?
Is the Deputy saying that the company concerned said to his informants that they have not received any correspondence from my Department?
No. What they said is that they have received correspondence but that the Minister has not raised this question of the special loading for the Dublin area.
I can positively state to the House that on the 1st June of this year my Department wrote to this company pointing out that I was not happy with the incidence of loading here in the Dublin area and that I had a reply from the company on the 3rd June. I was not happy with the reply and my Department wrote again on 11th June. We had a reply of 10th July from the insurance company concerned, in relation to this additional loading in the Dublin area.
Then we can take it that this company have misinformed their clients?
I do not know. I am answering the allegation the Deputy has made arising out of information he has from a client. I am certainly not saying that the company have misinformed the client because I do not know what the company informed the client.
Question No. 33.
The Minister will agree that if they have informed people that the Minister never once raised this question of overloading that that is——
That would be misinformation.
Did the Minister tell them that the special loading is an infringement of the 17½ per cent increase?
33.
asked the Minister for Industry and Commerce if he has any legislative proposals which could help reduce the level of motor insurance premiums.
As I already have power under the Insurance Acts, 1909 to 1964, to control the level of premiums for motor insurance, the power which I propose taking in the Prices Bill, 1971 to control insurance premiums generally will not alter the position in this respect. I have no other plans at present for legislation which might affect the position, and I do not propose to consider the possibility of such legislation until I have received the report of the Insurance Industry Committee which is expected to be received towards the end of this year.
Will the Minister state whether the present legislation prevents loopholes like special loading for the Dublin area in regard to motor insurance premiums?
No. There is no loophole there. If I become dissatisfied——
The Minister said he was dissatisfied.
No, I was dissatisfied with the type of explanations I received as to the reasons for the volume of loading. Let me say quite clearly from the information I have to hand that the incidence of claims for cars insured in the Dublin area seems to be higher that in relation to cars in rural areas. There seems to me to be some justification for an additional loading in the Dublin area but I am not satisfied with the background information I have so far received to justify the extent of the present loading.
Question No. 34.
Therefore, would the Minister not take power in the present legislation to prevent this?
If I were fully satisfied that it is too much, I have power.
The Minister said he is not happy with the present loading rate. Does that not justify——
As I have explained to Deputy Belton, I am in correspondence and the last reply I had from the company——
Meanwhile, people have to pay.
Could the Minister not order them to cease imposing this load of 20 per cent until he investigates the matter further?
As I said in reply to the last question I expect to have a report before the end of this year.
But this has gone on and thousands are paying.
Question No. 34.
I want to make sure, on the other hand, that insurance companies can pay demands when they are made.
But pending the Minister's decision would he not do this?
No.
34.
asked the Minister for Industry and Commerce when he expects a report from the commission of inquiry on motor insurance; and if action will be taken on the report as a matter of urgency, as it is now almost impossible to obtain insurance cover for cars at reasonable rates.
I expect to receive the interim report of the insurance industry committee on motor insurance towards the end of the year. I would then propose to give urgent attention to the examination of the committee's recommendations.
Is the Minister aware that when motor insurance premiums become due for renewal excessive increases are now being demanded, that there is a feeling abroad that some insurance companies are holding over in the hope of some increase coming from this commission on motor insurance? Is he further aware that since car owners are obliged by law to insure their cars they have no option but to pay these exorbitant increases? Will he now take some steps to moderate these excessive increases and lift the load on the motoring public immediately?
I did give sanction for an increase in insurance premiums by 17½ per cent about the 1st August last year. I have been keeping under as close a surveillance as I can the general overall increase in premiums. In the investigation of this I find that in certain cases additional risk may be involved. I would have no hesitation at all in moving to clamp down on overall increases in premiums if I thought that was necessary and justified. I have not got evidence of exorbitant increases. I think this is the term the Deputy used.
Advisedly.
I have not got positive evidence of this. According as a car ages it can be claimed that the car is a greater risk this year than it was last year. There are a number of factors that enter into the occasioning of a further increase in insurance premiums. In addition to that I am mindful of the fact that very few—indeed, I do not think any—insurance companies at present are seeking motor insurance which can be a reasonably positive indication of the fact——
A good reason for the State taking it over.
I do not want to make any comment on that aspect until I get the insurance committee's report.
How long have the committee sat?
Question No. 35.
Is the Minister aware that companies are increasing their premiums by up to 300 per cent? If he is not I can give him plenty of information on it.
The Deputy stands up in the House and says that if I am not aware of this he can give me information on it. Has he written to me in connection with that case?
The Minister has a full team of civil servants to do it for him.
I personally have not written but the person in question has written to the Minister. Only today I was told about it.
We cannot debate this question all evening.
He has written. It has been thrown into the wastepaper basket.
A Cheann Comhairle, would you allow me to ask one supplementary question of the Minister? Is he aware that because exorbitant demands are being made by insurance companies the incidence of uninsured and untaxed cars has increased to a fantastic level? Has he any evidence of that or is it only people like ourselves who go around the country who know? Do Ministers not know of these things?
I am unaware of this increased incidence of uninsured cars.
I am very surprised.
With regard to the inference that Ministers are not in contact I want to say that I have, and this can be borne out if the Deputy cares to check, as much contact with the people in my constituency as he has.
I am sure the Minister has more contact than I have with the people in his constituency.
Question No. 35.
(Interruptions.)
Is the Minister aware of the number of people who cannot get insurance on cars? Would he have figures in regard to that?
If there is any allegation of people who cannot get insurance my colleague, the Minister for Local Government, has arrangements to ensure that they will get insurance.
Not that they will get insurance but that he will investigate it and the answer usually is that he is terribly sorry but that nothing can be done about it.
Can we get on with questions, please? Question No. 35.
This is an important question.
There are 187 important questions on the Order Paper. I have called Question No. 35.
For how long have the Commission been sitting? Will they issue an interim report?
I have told the House when the report will issue.