asked the Minister for Industry and Commerce the percentage increase in insurance premiums over the past year.
93.
Ceisteanna—Questions. Oral Answers. - Insurance Premiums.
92.
asked the Minister for Industry and Commerce if he is aware that insurance companies have increased the premiums for fire and for public liability, et cetera, by over 100 per cent and if permission for each increase has been granted by him.
With your permission, a Cheann Comhairle, I propose to take Questions Nos. 92 and 93 together.
Motor insurance premium rates are subject to my control, and I have authorised no increase in basic rates of premium during 1971. I am aware that several companies have applied loadings to premium rates for certain categories of risk in the light of adverse experience but the loadings vary widely from company to company and it would not be possible to estimate an overall percentage increase.
An increase in employer's liability rates took effect in September, 1971, but here, again, the wide variation of increases makes it impossible for me to give an overall figure.
I have no legal power to control premiums for fire or public liability insurance and my permission is not necessary for increases in such premiums. I am, however, aware that substantial increases have been made in premiums for some types of premises where the insurance companies have found the risk of loss due to fire to be particularly bad. While the rate of increase varied according to category it may be taken that the average increase was in the region of 30 per cent. My Department is in touch with the insurance companies about a number of these cases.
Is the Minister not aware that certain companies have, in fact, increased their fire and public liability insurance by over 100 per cent, even in cases in which there is no known extra risk of a fire claim? If the Minister has no authority to control such increases would he not consider it a good idea to have the right of control, particularly in view of the fact that most of the fires which have occurred have been paid for by the ratepayers and not by the insurance companies?
I have information that there have been increases in fire premiums of up to 100 per cent. I am given to understand that, in general, this is in relation to large drapery stores which are not fitted with sprinklers and where the risk seems to be extremely high. I have also information which indicates that there have been losses sustained by insurance companies in the fire business. For the Deputy's information, the Prices (Amendment) Bill at present going through the House includes provision giving me power of control.
Surely the Minister will agree that it is ridiculous that a small modern hairdressing salon and a small office should be asked to pay an increase of 100 per cent in premium, there having been no incidence of fire in the one establishment or the other, and, in addition, would the Minister agree that the fires which took place in drapery stores and caused so much damage were not caused by accidental fires but by the malicious action of someone or other and the ratepayers paid.
That is a sweeping statement.
It is true.
To argue that every fire that took place was straightforward arson does not stand up.
I am not saying that it was, but there is difficulty in proving arson.
Will the powers given to the Minister in the Prices (Amendment) Bill be retrospective? Will they enable the Minister to institute inquiries into these exorbitant increases?
The powers will give me the right to control increases.
Will they be retrospective?
I cannot say that they will be used to follow an insurance company or anyone else for moneys extorted.
No, but the fact is they are extorting money now.
The premiums will be increased and, by the time the Minister has power, it will be too late.
Did the Minister say that, although he has control over motor insurance premiums, ways and means are being found to sidestep that control and increase the premiums regardless?
I indicated that companies have had recourse to what is described as loading and the loadings vary widely.
There are loopholes.
I appreciate that.