Written Answers. - Motor Insurance.
Brendan Howlin
Question:
37
Mr. Howlin
asked the
Minister for Industry and Commerce
when open competition for motor insurance will begin in Ireland; if he will list the EC insurance companies who have already sought sanction to offer motor insurance cover in Ireland; if he will outline any derogations sought by Ireland in relation to motor insurance; and if he will make a statement on the matter.
In relation to the first and second part of the Deputy's Question I would refer the Deputy to the reply which I made to Parliamentary Questions in this House on Thursday, 5 March 1992 (Dáil Debates, Volume 416 No. 8 Columns 1751-1766).
Ireland, along with Spain, Portugal and Greece, originally sought special transitional periods for implementation of the Second non-life services Directive, which excluded motor liability insurance. The special transitional periods allowed, effectively, for certain risks, a delay of six years for the liberalisation of large risk insurance business. The Motor Insurance services Directive which is due to be implemented in Ireland shortly also contains the same transitional periods.
I should point out that with regard to the Second non-life services Directive, after consultation with all interested parties and, in view of our commitment to a single insurance markets, the hope of increased competition for the benefit of consumers and increased opportunities for insurers here, I decided to waive the special transitional periods and to implement that Directive in full. I will shortly be making a decision on the adoption or otherwise of the transitional periods available under the Motor Insurance services Directive.
The Deputy should be aware that both of these Directives will be supplanted by the Third non-life Insurance framework Directive which will complete the liberalisation of cross-border non-life insurance business, including motor, and allow Irish consumers a greater choice of insurer throughout the Community. The Directive is expected to come into effect in July, 1994 and Ireland has sought no special transitional arrangements in relations to its implementation.
At present there are no applications from non-established motor insurers to offer motor insurance cover in Ireland. It remains to be seen how many such motor insurers will apply once the Motor Insurance services Directive is implemented.
