asked the Minister for Industry and Commerce if his attention has been drawn to the fact that motor insurance underwriters, with the exception of the New PMPA, are refusing to offer motor insurance cover to persons under 25 years of age; and the steps he is taking to rectify this situation.
Written Answers. - Motor Insurance.
134.
The Deputy will be aware that, as the insurance supervisory authority, my primary and statutory duty is to ensure that insurance companies maintain their statutory reserves and solvency requirements. In this regard I must respect the right of insurers to accept or reject risks in the light of their underwriting experience. There is no legal obligation on any insurer to quote in respect of any risk or to quote in any manner or at any particular premium.
I understand that in order to maintain their viability some motor insurance companies are tending to be more selective in the type of risk for which they are prepared to quote. This more selective approach tends to apply to new business rather than to existing policyholders.
Notwithstanding this, my information is that a number of companies, not just New PMPA, are continuing to offer insurance cover to persons under 25 years of age and that companies in general are not refusing renewal of cover to persons under 25 years of age.
In any event cases of inability to get motor insurance cover can be dealt with under the declined cases agreement. This is an agreement between the authorised motor insurers and the Minister for Industry and Commerce. The Declined Cases Committee, established under the agreement, examines cases referred to it by my Department where motorists have been declined cover by five or more insurance companies, and nominates a company to quote for the risk involved.
Before a case can be submitted to this committee for consideration it is necessary for my Department to have copies of written refusals from five insurance companies together with details of any previous insurance held in the last three years.