Jim O'Keeffe
Question:82 Mr. J. O'Keeffe asked the Minister for Enterprise and Employment whether he has satisfied himself that motor insurance premia are competitive; and if he will make a statement on the matter.
Written Answers. - Motor Insurance Premia.
Since 1976 both Irish and foreign owned companies have been providing motor insurance cover in the Irish market and indeed there are 30 such authorised insurers at present. These are either Irish owned or foreign owned companies established and authorised in this country on a head office or branch office.
The Third Non-Life EC Insurance Directive, which will allow non-life insurers, including motor insurers, to provide insurance across the EC on the basis of a single licence from the home member state, will be implemented in 1994. It remains to be seen what impact this final stage in the opening up of the EC insurance market will have in practice on motor insurance premia in this country.
The rates charged by these insurers may vary from company to company depending on their claims and underwriting experience. Therefore, I would advise drivers to shop around as much as possible when seeking motor insurance cover. Might I add that the Competition Act, 1991 prohibits anti-competitive practices and the abuse of a dominant position in the market. The Act, which applies to all sectors of the economy, including insurance, provides that any person aggrieved in consequence of an anti-competitive practice or an abuse of a dominant position has a right of action in the Courts for relief including damages. The onus is on aggrieved parties to use their right to protect their legitimate interests.