asked the Minister for Industry and Commerce if he is aware that an insurance company (name supplied) does not propose to renew existing car insurance policies in this country as they fall due for renewal; and the steps, if any, he proposes to take to ensure that policy holders with this company are not left without insurance cover.
Ceisteanna—Questions. Oral Answers. - Car Insurance Policies.
18.
I presume the Deputy is referring to the withdrawal of one of the syndicates of Lloyds from the Irish motor insurance market. I am aware that the syndicate in question announced its intention to withdraw from the market with effect from 1st September, 1974. The effect of the syndicate's decision was that policy holders with renewal dates on or after 1st September, 1974, would not have their policies renewed and would have to seek cover elsewhere. I have been keeping a close watch on the effect of the syndicate's withdrawal and I am satisfied that the policy holders affected have been successful in obtaining alternative cover.
How many of the policy holders have been affected?
They had 52,000 policy holders.
Out of a total of how many?
I do not have that information.
Is the Minister aware that younger policy holders are being charged punitive rates by the alternative companies they approached because of the withdrawal of this syndicate from the Irish market? Has he any plans to protect them?
They had 52,000 policy holders. The Department have received very few complaints—less than 20—about the number of people unable to obtain cover.
Because it is a futile exercise.
Is the Minister aware that people do not bother complaining any more because they are not getting any action from the Department?
That is not true. My information is that since the Minister's statement on motor insurance there has been a considerable improvement in the number of people who are able to get cover.
Can the Minister tell me the circumstances which led to withdrawal by this company from this field?
The circumstances behind the withdrawal were that the syndicate had in May, 1974 applied an unauthorised increase of 100 per cent on all its policies and on being told by the Department to cease this practice and to observe the rules by conforming to the requirements of the Minister's NPAC package they decided to withdraw from the Irish motor insurance market with effect from 1st September, 1974.
I will make the Minister aware shortly of the case of a young person who has 100,000 miles accident free driving. He bought a second-hand car for £130 and is being charged £140——
This is a separate matter. Next Question.
Would the Minister not agree that as a result of this company withdrawing from the market the Minister was forced to change the rules?
No, I would not.
Deputy Murphy, please resume your seat. The Chair has called the next question.