asked the Minister for the Environment if he will make a statement on the operation of the Motor Insurers Bureau agreement; and the aspects of it which may be in need of renegotiation.
Written Answers. - Motor Insurers Bureau Agreement.
33.
The present agreement was made between my predecessor and the Motor Insurers Bureau in 1964. Under the agreement, personal injuries compensation is payable by the bureau to victims of accidents involving uninsured vehicles, including stolen vehicles. In the case of "hit and run accidents" where the driver of the vehicle cannot be traced, ex gratia compensation is payable by the bureau only for personal injuries which involve serious and permanent disablement or death. Under the 1964 agreement, the bureau do not pay compensation for property damage.
The limitations of the present agreement will be largely eliminated as a result of the implementation of the Second EC Directive on Motor Insurance, which requires the bureau to: compensate for all personal injuries caused by unidentified vehicle drivers by 31 December 1988; and compensate for property damage, other than damage caused by unidentified drivers, by 31 December 1992.
The time limits laid down for implementation of the directive in Ireland are primarily designed to ease the impact on motor insurance premiums. Also, the bureau need a period to build up the necessary staff and office accommodation before they can begin, for the first time, to process property damage claims. My Department are preparing a discussion document on the implementation of the directive which will form the basis for consultation with insurers later this year.
Question No. 34 re-entered for oral reply.