asked the Minister for Industry and Commerce if he has received complaints about the delay in settling motor insurance claims by some insurance companies; and if he will introduce legislation to ensure that claims are met within a reasonable time or that the company's licence to carry on insurance business be withdrawn.
Ceisteanna—Questions. Oral Answers. - Motor Insurance Claims.
96.
My Department has received very few complaints about delays by insurance companies in settling motor insurance claims.
Under existing legislation, I am empowered to suspend or revoke an insurance licence granted to an insurance company if it fails to pay a claim within a period of one month from the date of admission of liability or judgment of the case by the courts. I understand that what may delay the settlement of claims is the consideration of their admissibility or the assessment of liability. As Deputies are aware a committee is examining motor insurance and, no doubt, the committee will consider all aspects which give rise to complaints by the general public. I do not propose to make any changes in legislation in advance of the committee's reports.
Would the Minister not agree that in the case of at least one company operating in this country it would appear that they first inspect the repairs and stipulate the minimum amount to be spent on repairs and, having done that, avoid paying by the device of allowing the matter to go to court, in other words by contesting some liability, with the result that people of modest means are forced to raise money to pay garages for repairs for which the insurance company should pay since their clients were responsible for the damage done? Would the Minister not consider that something should be done to prevent that sort of racket?
As I said in my reply, we have not had any volume of complaints of this nature. If the Deputy refers to a particular company I have no departmental knowledge of that.
I appreciate that. Possibly if the Minister receives such complaints he might be prepared to do something about it. Perhaps this question will bring in the complaints which so far have only caused people to curse and do nothing about it.
Any changes in legislation to deal with anything of that nature will not be brought about until I have the commission's report.
I appreciate that. I am not trying to be awkward about this, but it is a scandal that this should be allowed to happen.