asked the Minister for Industry, Commerce and Energy the present position with regard to the availability of insurance for drivers of motorcycles and if there is only one company in this country offering such insurance; if so, if he is concerned about the dangers of a monopoly in this situation; and if he is satisfied with the costs and availability of such insurance at the present time.
Ceisteanna—Questions. Oral Answers. - Motorcycle Insurance.
9.
There is at present no evidence available to me that would indicate that persons seeking motorcycle insurance in this country are unable to obtain cover. If, however, the Deputy has any information to that effect I will be prepared to have the matter investigated on receipt from him of the necessary particulars.
Compulsory third party insurance for motorcycles is available from seven companies in this country. One of these, however, has developed over the years a degree of specialisation in motorcycle business and is understood at present to insure over 90 per cent of motorcycle risks. There is no evidence that the dominant position of this firm is prejudicial to the interests of insurers or that it has sought in any way to exploit its dominant position.
Bearing in mind the high and increasing cost of claims, I am satisfied that the cost of motorcycle insurance in Ireland, which is subject to control under the Prices Acts, is both realistic and fair.
In view of the information given in the Minister's reply, which is to the effect that in excess of 90 per cent—which I presume, depending on where within the 90 to 100 per cent spectrum it falls, must be close to the total market in motor cycle insurance—seems to be controlled by one company, is she aware that that situation contains difficulties which would-be motor cycle insurers are experiencing? Has she any reports, or have any inquiries been made, about the difficulties incurred by people trying to get such insurance at very high rates, in a monopoly situation?
I would inform the Deputy that there have been very few complaints—possibly three over the past five years—in regard to the non-availability of motor cycle insurance.
Is it legal or proper for any insurance company to refuse to quote to a would-be insured person?
We have not received any complaints that any insurance company of the seven who operate this have in fact refused. But if the Deputy has specific information, we would be delighted to look into it.
Would the Minister be good enough to have publicised the names of these companies, because I do not think they are generally known? I have spoken to a number of motor cyclists who have told me quite categorically that they have never heard of any other except one company dealing with this insurance?
The names of the seven companies are: the Norwich Union, who have the majority of the market, the PMPA, ICI, Irish National, Sun Alliance, General Accident and Guardian Royal Exchange.
Is there control specifically over the loading component in the case of motor cycle insurance?
That is a separate question.
All of the cost of motor cycle insurance, including the component parts of any application that any company makes for an increase in insurance, comes under the scope of the Prices Acts, and all of these things will be scrutinised in the course of the examination of the price increase proposal.
Is the specific loading component of the insurance premium subject to price control?
Yes, I would imagine it is, just as any price increase proposal would be subject to scrutiny.
The Minister is not sure whether that particular component is subject to price control?
As far as I know it is, but I can inform the Deputy afterwards.