asked the Minister for Industry and Commerce if he is aware that an insurance company (name supplied) insist on the inclusion in motor insurance premiums of an element for personal effects whether it is required or not and that this has the effect of increasing the cost of motor insurance; and what action he proposes to take in the matter.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
28.
I am aware that the company in question have incorporated cover for personal effects as a compulsory element in all their motor insurance policies. As I have said on many occasions before, I am not satisfied with the present position in the motor insurance market generally, and I propose to look closely at the whole position when I receive the interim report of the Committee on Insurance, which I hope to do shortly. While I hope that it may be possible to remove or modify some of the undesirable practices which have grown up in motor insurance in recent years, it is only right to add that because of the high incidence of road accidents the prospect of a reduction in the overall cost of insurance does not seem at this stage to be good.
There is no question of the high rate of accidents. Does the Minister consider that this company are justified in including compulsorily a certain amount for personal effects when the insurer has stated deliberately that he does not want them covered? The company are insisting that £3 or £4 must be included in the premium for personal effects. Otherwise they will not cover the person.
As I said in my reply, a number of undesirable practices have grown up. I think I should wait until I get this report before I take positive action. The insurance company of which the Deputy speaks are linked in with a private motorists protection association of which all who insure with this company are members. The association ask for this type of cover to be given so it is wrong for the Deputy to say that this is forced on the insurer and that he does not want it.
Does the Minister agree that this is one of the undesirable aspects of insurance?
I do.
Is he aware that 12 months ago I had a complaint from the same person and I put down a question to him and he told me that he was investigating it? Since then the Minister has not arrived at any decision and has not got a report on the matter.
I am aware that the Deputy asked me questions on two occasions.
Twelve months ago.
Within a 12-month period.
The same person came to me when he was renewing his premium.
Question No. 29. Would Deputy Belton allow us to get on with questions?
(Cavan): When does the Minister expect the report?
I said on a number of occasions that I expect this report during the course of this month.
Last year the Minister expected it shortly.