asked the Minister for Industry and Commerce if he has under consideration any remedial measures to eliminate discrimination by insurance companies against applicants seeking cover for motor insurance; and if under EEC regulations it is possible for a more competitive form of motor insurance to cover the Irish market.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
35.
I am concerned to ensure that motor insurers as a body continue to make motor cover available to the general public at competitive rates. Individual companies must, however, be allowed exercise their commercial judgment in regard to what risks they cover and to charge loadings in accordance with the schemes of loadings submitted to and accepted by my Department.
I can say that the level of competition on the market over the past 12 months has improved in that the number of complaints of refusal to cover alleged restrictive practices has dropped considerably. Companies are now being less restrictive in their underwriting than before.
I have recently received a report of the Examiner of Restrictive Practices on the extent of competition on the motor insurance market and this report is being examined. The Motor Premiums Advisory Committee is engaged on a long-term statistical exercise to establish a basic premium and appropriateness of loadings. The declined cases agreement between motor insurers which provides that cover will be provided except in cases where it would not be in the public interest to do so is being reviewed and a more binding agreement is expected to be concluded shortly.
I am not quite clear what the Deputy has in mind about the bearing of EEC regulations upon the competitiveness of motor insurance, but the opening of our non-life insurance market in accordance with EEC rules has already resulted in the licensing of six new companies to do motor insurance and I expect that in due course there will be further entrants to the market, thus improving the competitive situation.
Is the Parliamentary Secretary aware that there is grave dissatisfaction in the area of motor insurance? Is he further aware that insurance companies have been refusing to insure many people who have been convicted and that the appeals machinery is completely unsatisfactory? Would he ensure that once a person has been convicted and pays a penalty at least he will not be deprived of his livelihood by the insurance company? Will the Parliamentary Secretary ensure that such person will not be denied the right to re-insure even at an increased premium as some insurance companies have been refusing to insure in recent times?
As far as the appeals machinery is concerned I have already indicated that I am seeking recommendation with regard to undesirable risks in the interests of all parties by particular persons seeking motor insurance. As far as grave dissatisfaction is concerned, there are still problems in the motor insurance market. A good index of the extent of those problems is the number of complaints received and indications are that the number has fallen very considerably and people are obtaining insurance much more readily now than was the case in the past. This is the result of more active competition in motor insurance than existed hitherto.
As far as the individual risks mentioned by the Deputy are concerned, particularly in the case of people who have been convicted, one must realise that if a person is such a bad risk that the company would find it impossible to consider covering him, that the risk that they would have to pay out would be so great that it would not be worth their while covering him, in these very extreme cases they must have ultimately the right to refuse.
Is the Minister aware that people have been blackballed in this city by insurance companies and are now unable to obtain insurance cover? Would he not agree that the loading system that sometimes appears to victimise people is unrealistic and needs to be modified and standardised realistically in relation to insurance?
I am not aware of anybody being blackballed in the sense used by the Deputy but if he will give me the names of the people I will have the matter looked into and I will look into any individual cases where he feels that the loadings are not related to the risk. I have already been able to secure information for individuals.
I wrote to the Parliamentary Secretary some time ago in relation to two cases and in both cases these people were certainly blackballed. Rightly or wrongly, the appeals list——
Questions, please.
——was not adequate to deal with it. Would the Parliamentary Secretary ensure that the appeals list is rectified in order to ensure that no injustice is done to insurance companies or to the persons who feel they have a grievance?
I have already said that I would seek an investigation in the matter.