asked the Minister for Industry, Trade, Commerce and Tourism if he will publish the contents of the declined cases agreement entered into by those companies operating in the motor insurance business in Ireland and his predecessor in 1981; if such an agreement has been treated as a secret agreement; and, if so, whether he believes the agreement can be of assistance to young drivers looking for motor insurance cover if such drivers are not aware of the contents of the agreement.
Ceisteanna—Questions. Oral Answers. - Motor Insurance Agreement.
1.
The agreement made by the motor insurers with the Minister in 1981 in relation to declined cases is not secret. I can give the Deputy a copy of it now if he likes. There is, however, an agreement made between the insurers themselves supplemental to the principal agreement defining amongst other things how the declined cases committee will work and how declined cases will be allocated amongst insurers. My Department have asked the insurers, and they have agreed, to let the Deputy have sight of this agreement. If the Deputy contacts me I will have the appropriate arrangements made.
As far as young drivers are concerned, if any such driver is having difficulty in getting quotations for insurance cover, he or she should contact the insurance section of my Department who will explain the terms and operation of the declined cases agreement and will provide any assistance necessary to obtain cover. I would point out in this context, however, that any quote obtained by, or for, such persons, which is in line with the approved rates for the company concerned, puts their case outside the scope of the declined cases agreement.
I do not consider that a detailed knowledge of the agreement would improve the prospects of young drivers getting cover.
Is the Minister aware that when I contacted his Department last January I was refused a copy of the agreement and that it was only when I put down the question that contact was made by the officials of his Department indicating that the agreement was not secret?
I am aware that the Deputy issued a press statement on 2 February during a period in which the Department were examining his request and making contact with the insurers in relation to the supplemental agreement. The Deputy may have a copy of the main agreement and may have sight of the supplemental agreement.
Would the Minister not agree that the hundreds of complaints received by Deputies regarding the impossibility of obtaining motor insurance for young people are proof that this agreement is not known and not generally available? In reply to a question last week the Minister informed me that seven cases were referred to the declined cases agreement since 1981. Of 17 insurance companies who were requested to insure a young person aged 20, only one would agree to do so. Would the Minister not agree that the whole system of insurance for young people is discriminatory and a farce and that something needs to be done to bring insurance companies to heel?
I am not aware that there is discrimination against young drivers. The Deputy is over-dramatising the whole area of insurance for young drivers. My Department have made inquiries among insurance companies and are satisfied that a number of companies are taking on young people. There is a clear procedure with regard to declined cases. If Deputies wish to bring any specific cases to my notice, they can do so by contacting the Department.
I sent the Minister's Department a copy of the statement I issued last February in which I instanced 16 companies who refused insurance for young people but I still have not received a response. Neither did I get a response to the question last week. Would the Minister be kind enough to send to every Member of this House and of the Seanad a copy of the declined cases agreement so that the information contained in it could be spread throughout the country?
I am prepared to let the Deputy have a copy of the declined cases agreement, which is not a public document but an agreement between my Department and the insurers. There is a supplemental agreement between the insurers covering the manner in which they will handle various cases amongst themselves. The Deputy may have sight of the latter agreement and that is as far as I can go.
Would the Minister agree that there are two types of discrimination against young people in regard to motor insurance? In the first instance insurance companies may fail to give a quote and, in the second instance, where they do give a quote it will be ridiculously high, well beyond the means of the person to pay.
Insurance companies have been sanctioned rates for tendering for all classes of motor insurance. It is a very complex area and one must take into account such things as experience, type of car and whether the driver has a full or provisional licence. It is not a simple case to answer. There is a procedure under which young people who are not in a position to obtain a quotation or are being refused quotations can have their cases fully examined. The matter should be dealt with through my Department.
There were several cases in the last four years.
Would the Minister also make available to me a copy of the agreement and allow me sight of the supplementary arrangements? That would be very useful.
I should only be too happy to do that.
A final question.
Is the Minister aware of the difficulties which young people face because insurance companies give such high quotations that they far exceed, in some cases, the value of the car? Because they cannot get insurance cover, many are driving around completely uninsured.
As I have said, there is a procedure under which such people can make contact with the insurance section of my Department and their case can then be fully processed.
This is positively the last question.
Is the Minister aware that pillion passengers on motor vehicles cannot get any cover whatsoever?
I am not dealing with——
That is another question. You can appreciate that, Deputy.