Dáil Éireann debate -
Tuesday, 28 May 1991

Vol. 409 No. 1

Written Answers. - Motor Insurance.

Ivor Callely

Question:

68 Mr. Callely asked the Minister for Industry and Commerce the action he proposes to take to curb the growing problem where young people under 25 years of age cannot avail of motor insurance as the insurance companies are refusing to quote for cover; and if he will make a statement on the matter.

Minister for Industry and Commerce (Mr. O'Malley)

While I am aware of the caution with which insurance companies quote for motor insurance to those aged under 25 years as a result of their claims experience for this age group, I do not accept that there is any general refusal to quote for cover.

I would like to remind the Deputy of what I have said in this House on numerous 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 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. No legal obligation can be placed on any individual insurer to quote in respect of any risk, to quote at any particular premium or to quote in any particular manner.

Where motorists, including young drivers, are refused quotes for insurance, cover is available through the declined cases committee. This committee, established under the declined cases agreement, is comprised of representatives of the authorised motor insurance companies. It examines cases which have been declined by five or more motor insurance companies and nominates one of the companies to quote for the risk involved. Before a case can be submitted to this committee for consideration, it is necessary to approach and obtain written refusals from five motor insurance companies. These should then be forwarded to the Declined Cases Committee, Irish Insurance Federation, Russell House, Russell Court, St. Stephen's Green, Dublin 2 indicating the order in which they were approached, together with details of previous insurance, if any, held in the last three years. It should then be possible to have the necessary cover arranged and thus ensure that motorists can comply with their legal obligation to have motor insurance.

Bernard J. Durkan

Question:

69 Mr. Durkan asked the Minister for Industry and Commerce if he will outline the cost of motor insurance in respect of the average family car for (a) males, (b) females and (c) under 25's for (a) and (b) above in each member state of the EC; and if he will make a statement on the matter.

Minister for Industry and Commerce (Mr. O'Malley)

The detailed statistical information which the Deputy seeks is not available to my Department. However, on the basis of data from the insurance industry and the Department of the Environment, my Department estimate that the overall average price of motor insurance in Ireland per vehicle was £363 in 1989.