asked the Minister for Industry and Commerce if his attention has been drawn to reports that an insurance company (details supplied) has been operating a blacklist of certain areas of Dublin and refusing to insure cars of people living in these areas; if he intends to raise this matter with the company involved; if he intends to take any measures to stop companies operating these blacklists; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Motor Insurance Cover in Dublin.
11.
I am aware of the reports referred to by the Deputy and I have raised the matter with the insurance company concerned. They have stated that they do not discriminate or operate a blacklist on the basis of district in providing third party motor cover which is compulsory under the Road Traffic Acts.
Any additional cover, such as fire and theft, is not compulsory and the company have stated that they are selective as to the scope of cover which they provide in certain urban areas; but if adequate security is provided for a vehicle in any area then such cover would be favourably considered by them. This selectivity is based on normal underwriting prudence and as the insurance supervisory authority, whose primary responsibility is to ensure that companies are maintaining their solvency margins and reserve requirements, I cannot fault the exercise of such prudence.
If anyone in any area is refused basic third party insurance by five or more insurance companies, the matter should be referred to the insurance section of my Department for submission to the Declined Cases Committee. Cover is always available in these cases except in very exceptional circumstances where it is considered that it would be contrary to the public interest to provide insurance. The committee cannot, however, compel insurers to provide anything other than the legally required third party cover.
Can I take if from the Minister's reply that apart from third party cover, which is legally required, the Minister would have no control over the remainder of the car insurance business even if it seemed to him to be discriminatory? My question refers to discrimination in a number of areas and not to individual insurers. Does that come within the Minister's jurisdiction?
I have no statutory function in relation to what the Deputy has referred to. I should say, however, that the provision of garages and the alarms used on cars are factors which are taken into consideration by the insurance company in the provision of fire and theft insurance.
Does the Minister realise that the operation of this discrimination in regard to insurance policies means that people in the more affluent areas have cheaper insurance cover on their cars while the people in the less affluent areas have more expensive insurance cover on their cars? Is that not discriminatory?
That is not necessarily so. The question of underwriting and taking on special risks is a matter for the company involved and I have no statutory function in directing them as to what they should do in any particular area.