asked the Minister for Industry and Commerce, in relation to vehicle insurance, if his Department has carried out a detailed investigation regarding the present state of car insurance in this country, including the very substantial differential between the costs of such insurance in this country and elsewhere; if he is in a position to guarantee that there will be improvements in this respect once the Courts Bill, 1986, has been enacted; and if the necessary monitoring has been done to ensure that real reductions, in line with undertakings given by the insurance industry, take place at that time.
Written Answers. - Vehicle Insurance.
13.
The high cost of motor insurance in this country has been a source of concern to, and the subject of detailed consideration by, my Department and various committees of inquiry over the last decade or so. Essentially the high cost of motor insurance is directly attributable to the numbers and levels of claims occuring here. Strict price comparisons with other countries are not valid because of the varying market conditions.
The incidence of claims has resulted in enormous underwriting losses for insurers here. Stabilisation and reduction of premiums will only come about when the cost and numbers of claims are reduced. Determined action is being taken by the Government to bring about these reductions.
The Courts Bill, 1986, provides for the abolition of juries in personal injury cases. The abolition of juries is expected to reduce insurance costs and thus insurance premiums. The insurance industry have recently reiterated an earlier commitment to this effect, and they have specifically agreed to give a better deal to young drivers once the Courts Bill becomes law. The Government expect that improvements will also be given by the insurance companies in employers liability as a result of the Courts Bill.
The reduction of high insurance costs is an integral part of the Government's Programme for National Recovery. Insurance industry representatives have given assurances that reductions in insurance premia will follow the introduction of an improved framework and I will ensure that they live up to their promises. To this end the Department has the necessary premium statistics to monitor the position and to ensure that real savings are passed on to consumers.