Dáil Éireann debate -
Tuesday, 10 Jul 1990

Vol. 401 No. 4

Written Answers. - Motor Insurance Directive.

Phil Hogan

Question:

46 Mr. Hogan asked the Minister for the Environment when the proposed third EC Council directive COM (88) 644 will be implemented; if this will result in an increase in insurance premia for various classes of insurance; and if he will make a statement on the matter.

Minister for the Environment (Mr. Flynn)

The Third EC Directive on Motor Insurance — 90/232/EEC — was adopted on 14 May 1990. Article 6 of the Directive lays down deadlines for the implementation of the Directive.

Article 1 requires the compulsory insurance of passengers on all vehicles with seating accommodation for the safe transportation of passengers. In Ireland, compulsory third party insurance must be extended to passengers on goods vehicles and motor cycles. The compulsory insurance of passengers on goods vehicles will increase premia by an estimated 25 per cent — but only in those cases where such passengers are not insured, on a voluntary basis at present. Ireland has secured a three-year derogation, until the end of 1995, to phase in the impact on commercial vehicle insurance premia. The compulsory insurance of pillion passengers on motor cycles will increase premia by an estimated £100 per annum, on average. Ireland has secured a six-year derogation period, until the end of 1998, to minimise the impact on motor cycle premia.

Article 2 of the directive improves third party insurance cover for driving abroad. Irish motorists will be automatically insured up to the minimum cover laid down in the EC member state, or in Irish legislation, whichever is the greater. In effect, this means that Irish motorists driving in EC member states will have unlimited personal injuries cover. Ireland secured a three-year derogation from Article 2 until the end of 1995. By that stage, all EC member states will have introduced the minimum cover limits of 272,000 for personal injuries and £78,000 for property damage, as laid down by the Second EC Motor Insurance Directive. The impact on premia will not be significant when spread over about one million insured vehicles in Ireland.

Articles 3 to 5 provide for improved procedures to assist victims of road accidents to effectively recover compensation and must be implemented by the end of 1992. Existing procedures in Ireland are substantially in line with the new EC legal requirements and no significant increases in premia will arise.