asked the Minister for Industry and Commerce whether he is aware that a driver (name supplied) in Dublin with a valid driving licence has been refused insurance cover by other insurance companies since the company with which he was insured withdrew from the Irish motor insurance market; and whether he will take steps to require all insurance companies to quote a premium on a competitive basis to every driver seeking insurance.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
31.
I am not aware of this case. I presume the person referred to by the Deputy is a former policyholder of the Century Insurance Company which withdrew from motor and some other classes of insurance earlier this year. As I indicated in answer to a question on 6th May last another company expressed a willingness to help Century clients.
If the man referred to is unable to get cover, he should apply to the Minister for Local Government, who has special machinery available, arising from his responsibilities under road traffic legislation, for securing cover for persons who have been refused cover entirely or who have been quoted a rate so prohibitive as to be tantamount to refusal.
I have no power to compel an insurance company to undertake any particular risk, and the existence of the machinery I have just referred to is relevant in this respect. Should the Committee on Insurance currently sitting have anything to say on the subject, I shall of course consider it.
Does the Minister not feel that he ought to have power to require an insurance company which is making profit in this country to quote for any risk put to them? If a firm are engaged in motor insurance, should such company not be required to quote, even though their rate may be prohibitive? People would then have at least some opportunity of being insured, because firms will quote competitively. No company should be allowed to remain in business if they refuse to quote a rate, while it is for the company, of course, to decide what their rates will be.
I have no power to compel a company to undertake any particular risk. Such power might be dangerous for a Minister to take.
Surely a company should quote?
Quoting is automatically an undertaking to take the risk. A company cannot give a quotation and then refuse to underwrite the risk.
Why should a company not be obliged to quote while being free to decide on premiums appropriate to the risk? Surely it is inconsistent with any concept of their duty to the general public?
There have been many suggestions as to what could be done in this regard. I am anxious to await the report of the Committee on Insurance. From my information, following inquiries about the person mentioned, we have had no correspondence about his case in my Department or in the Department of Local Government.
The information came direct to me.
When will the report of the committee be published?
I hope to have this report by the end of the year.
Will the Minister act on it quickly?
As speedily as possible.