asked the Minister for Trade, Commerce and Tourism the proposals to alleviate high insurance premiums for young drivers.
Written Answers. - Motor Insurance.
77.
It has long been the practice of motor insurance companies to apply loadings in the case of premiums charged to young drivers because underwriting experience shows that claims are heavier, both as to frequency and amount, than in the case of other policyholders.
The Motor Premiums Advisory Committee is engaged in a long-term analysis of the appropriateness of the loading factors applied by motor insurers, including those applied to young drivers. The committee's preliminary findings have indicated that the loadings applied to young drivers broadly reflect the risk involved. The committee's examination is continuing.
The Committee of Inquiry into the Cost of Motor Insurance established in October 1981 was also asked to examine the level of premiums payable by different categories of drivers, including young drivers. That committee is to report to me by 31 December next.