Mervyn Taylor
Question:20 Mr. Taylor asked the Minister for Industry and Commerce whether he has now abandoned his proposal for an injuries awards tribunal; and if he will make a statement on the matter.
Written Answers. - Injuries Awards Tribunal.
During 1990, motor insurers notified my Department of increases in their premiums which resulted in an overall increase in rates of 30 per cent on average. Since January 1991 the average increase notified to the Department is 9 per cent. However, I consider it only right to point out once again that the fundamental cause of high motor insurance prices for all motorists in Ireland is the high claims rate which, regrettably, is on the increase, allied to the high cost of individual claims which is also rising. One cannot reasonably expect the price of motor insurance to reduce, or even stabilise when the claims rate and cost of claims is increasing.
In 1988, insurers sustained underwriting losses of £48 million on their motor portfolios, the corresponding figure for 1989 was more than double that at £116 million and is expected to be even higher for 1990. Confronted with losses of this magnitude and in order to maintain their viability insurers have considered it necessary to increase their premiums in line with their claims experience.
In the context of improving the environment for insurance the Government recently set up an inter ministerial group to examine ways and means of improving the environment for motor insurance in particular. This group are focusing on strict and sustained enforcement of existing road traffic legislation, amendments to the Road Traffic Acts designed to reduce the motor accident rate, suggestions it improve the cost and availability of motor insurance and improvements/ alternatives to the courts system for the resolution of personal injury cliams. I am hopeful that this will result in a number of positive proposals which can be implemented in the very near future. I would add, however, that Government action of itself will not reduce or stabilise motor insurance costs. Consumers must play their part by increased awareness of the need for safety.
I would like to remind the Deputy of what I have said in this House on numberous occasions, in that, as the insurance supervisory authority I have a responsibility to ensure that insurance companies meet their statutory solvency and reserve requirements. I do not, however, have responsibility for the day to day operations of insurance companies. Therefore, I must respect the right of insurance companies to make their own underwriting decisions in the light of their particular circumstances and assessment of the market.
John Bruton
Question:25 Mr. J. Bruton asked the Minister for Industry and Commerce if he will list the sensitive sectors, referred to in paragraph 7.5 of the Review of Industrial Performances, which are ineligible for grant support from industrial promotion agencies; by whom the list was established; the agencies to which it applies; and if there are proposals to add to the list.
Details of the sectors comprehended by the sensitive sector list are set out in annex 1 to the Operational Programme for Industrial Development 1989-93, copies of which are available in the Dáil Library. The list was originally established by the IDA and applies to the three main grant-giving agencies—IDA, SFADCo and Údarás na Gaeltachta. As indicated in the review my Department propose to review the list in association with the State agencies concerned.