Vol. 407 No. 4
33 Mr. Barry asked the Minister for Industry and Commerce if it is possible to separate third party claims from comprehensive claims in car insurance in order to determine whether third party, which is required by law, is in fact losing money; and, if not, whether he should instruct insurance companies not to include third party premiums to cover their losses from comprehensive claims.
In providing data on claims and claims costs insurers are not required to differentiate between third party, third party fire and theft and comprehensive claims. Consequently, it is not possible from the data available to my Department to separate third party claims from comprehensive claims.
However, I understand that insurers do set their third party rates on the basis of their third party claims experience. An additional premium is charged, for example, for fire and theft and accidental damage cover based on the claims experience of the individual company for these optional types of cover. There is, of course, no legal obligation on a policy-holder to effect any additional type of cover. This is a decision solely for the individual concerned.
