asked the Minister for Industry and Commerce in view of the serious difficulty at present in obtaining motor insurance at a reasonable premium, the action he proposes to take in the matter.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
2.
The interim report of the Committee on Insurance contains a number of recommendations with a direct bearing on the level of motor insurance premiums and the difficulty experienced in some cases in getting cover, and I am at present considering these recommendations. I hope to decide on a course of action fairly soon.
Might I ask the Minister, in his consideration of the Report and his examination of the situation generally, to bear in mind that there are quite a number of young people today, under 25 years of age, who find it almost impossible to get motor car insurance. In many cases this results in very grave hardship, because quite a number of these people require motor cars for their business or for trade purposes. For instance, quite a number of tradesmen in these days need a motor car to pursue their employment. Will he keep this aspect in mind in his examination of the Report?
Further arising out of the Minister's reply——
Perhaps the Deputy might allow the Minister to answer Deputy Haughey's question first.
I am, indeed, acutely aware of the embarrassment of these young people and of others who find difficulty in getting cover. One of the reasons was, of course, that the rate of profit for the insurers in the motor insurance area was very narrow, partly because of a refusal—I will not speculate on the reasons—to grant an increase in premiums. The Deputy will be aware that in the April Report I accepted the recommendation of the National Prices Commission and granted a 10 per cent rise in premiums on motor insurance policies which may, to some extent, alleviate this situation. Other steps which were recommended to me in the Interim Report of the Committee on Insurance are under active consideration.
May I mention one other aspect of it to the Minister for his consideration? As I say, people under 25 years of age seem to be very much discriminated against in this regard. Would the Minister bear in mind that the State insists that these people have insurance before they are permitted to tax their cars? Therefore there is an obligation on the State and on the Minister, or the Minister for Local Government, to facilitate these people in getting insurance.
I agree with the point the Deputy makes, but I am sure he is aware that a scheme is operated by my colleague in Local Government which assists such people by intervening with the insurance companies in this operation.
I should like to ask——
Deputy Lemass has intimated that he wishes to ask a supplementary question.
When the Minister is examining this problem, will he bear in mind such people as professional drivers, as I would call them, commercial travellers and mature people like actors, and so on, whose premiums are usually very heavy?
Yes, I will.
Has the Minister given any consideration to the nationalisation of the insurance industry?
That seems to be a separate question.
That came up last week and I expressed my thoughts then. I would refer the Deputy to the record.
My question in relation to insurance might not be directly relevant, but has the Minister any plans for insuring vehicles that have been insured with companies who have now opted out of insurance for motor vehicles and they are left without any insurance?
There is a scheme to which I have already referred in reply to Deputy Haughey which is operated through the Department of Local Government for providing assistance where such cases arise. Perhaps it is not totally satisfactory but it solves the problem for many people who make representations.
Would the Minister arrange for the companies in question to notify to their insured persons that this arrangement exists?
I do not think I have power to instruct them, but I will be happy to pass on the Deputy's request.
Is the Minister aware that people under 25 years of age who have motor cycle insurance and apply for motor car insurance cannot even get a quotation from insurance companies?
I am aware not that it is impossible but that it is very difficult for some people to get cover. Perhaps the Deputy is aware that one of the items in the Interim Report was a recommendation that a representative board should be set up to advise on premiums, to advise on the collection of statistics, and to process complaints. I am pursuing this recommendation actively, which may go a considerable way to overcome the difficulty.
We have to pass on to Question No. 3 at this stage.