asked the Minister for Industry and Commerce the steps he intends taking to remedy the deteriorating situation in the motor insurance business; and how he proposes to assist the public in the matter of the premiums being imposed.
5.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
4.
asked the Minister for Industry and Commerce if, in order to allay public disquiet, he will make a statement on future policy in respect of motor insurance.
With the permission of the Ceann Comhairle, I propose to take Questions Nos. 4 and 5 together.
On 27th June last I announced that I would give an increase in motor premium rates of not more than 30 per cent in two phases to insurers who submitted to me by 1st November next schemes for the reduction of loadings on the lines recommended in the report of the motor premiums advisory committee. The first phase of 10 per cent would be given to any insurer who gave me an undertaking to submit such a scheme by the date in question and the second phase of the increase would apply from the date of implementation of the approved scheme.
All the leading insurers—15 in all— gave undertakings and were permitted to apply the 10 per cent first phase increase. Seven of the 15 have already submitted schemes which are under urgent consideration in my Department and the remaining eight schemes are expected by the end of this month.
I would not agree that the situation in relation to motor insurance is deteriorating; rather I would feel that there has been considerable improvement in the market as evidenced by the big decline in the numbers of motorists appealing to my Department for help in getting insurance cover. I am confident that this improvement will be maintained and that, with the approval of the schemes submitted by insurance companies, the market situation should return to normal before long.
Has the Minister made any provision for appeals by persons who have been refused insurance? I am submitting to the Department particulars of a firm that have been refused insurance and this has rendered a number of men unemployed.
There is a scheme being operated by the Minister for Local Government to which I myself have had occasion, more in the distant than in the immediate past, to refer such appeals. I understand some action is often possible.
Would the Minister make arrangements to have knowledge of this body made known to the public? Many people do not know where to turn when they have been either quoted prohibitive rates or refused insurance altogether.
The problem, as evidenced by communications to my Department, is dramatically ebbing by comparison with the recent past. Both my Department and that of Local Government are often able to intervene in this matter. I think the occasion of a parliamentary question like this and the reporting of it is sufficient to bring it to the notice of the public.
Is the Minister aware that a number of British insurance companies have indicated they do not wish to continue providing motor insurance here? Can any representations be made by the Department in regard to the insurers in question? Can he give a guarantee that this 30 per cent increase is the maximum that will be allowed?
The increases have been in two phases and I think this has led to confusion. On 27th June I announced the increase of 30 per cent and it was clear it was to be in two phases. The first of 10 per cent took place quite rapidly and the second phase was to be effected when the schemes were approved. That is all of the increase permitted. In regard to the matter of British insurance companies, there are continuous contacts between the British companies and my Department and I understand that, with this regretted but apparently inescapable increase in premiums, the problem is considerably eased. The suggestions we have had of unease in the Irish market because of the possible withdrawal of the British companies is much less in evidence. I think this increase is on the way to resolving the difficulty.
Will there be any provision in the agreement to eliminate the present practice of effectively debarring applicants for insurance from obtaining it if they approach and are refused insurance by a particular company? The present situation is that if a person approaches a company and for one reason or another is declined, effectively he is debarred from going to any other insurance company. That in practice means there is no competition between the insurance companies. Would there be any prospect of restoring the situation where there is competition?
I can assure the Deputy that the situation he describes is not in accordance with the position in general as I know it. I do not deny that, that could occur in a limited number of cases and I should be very happy to hear about them so as to ensure that normal competition exists between the different insurance companies.
Could the Minister ensure that this practice of loading would not be permitted? People find that they are subject to loading by virtue of the fact that they live in Dublin. Has the Minister power to intervene in such cases?
The implementation of the second part of the agreement in regard to increases, which was approved in June, is conditional on the submission of a scheme of simplification and the elimination of loading. While it may not be possible to eliminate all loading—it might not be desirable to eliminate all loading— which had reached the position where it was vastly complex and unsatisfactory, I am satisfied the great majority of loading is being eliminated under the proposals that have to be submitted by the companies in order to obtain the second phase of the increase.