Dáil Éireann debate -
Wednesday, 26 Oct 1994

Vol. 446 No. 4

Written Answers. - Motor Insurance.

Jim O'Keeffe

Question:

62 Mr. J. O'Keeffe asked the Minister for Enterprise and Employment his views on whether motor insurance rates for young drivers are exorbitant; the plans, if any, he has to address the problem; and when steps will be taken in this regard. [2200/94]

Eric J. Byrne

Question:

69 Mr. E. Byrne asked the Minister for Enterprise and Employment the plans, if any, he has to address the high cost of motor insurance; the plans, if any, he has for the introduction of an Insurance Ombudsman's Office independent of the insurance industry; and if he will make a statement on the matter. [2238/94]

Minister for Enterprise and Employment (Mr. Quinn)

I propose to take Questions Nos. 62 and 69 together.

I would refer the Deputies to the answer which I gave to Parliamentary Question No. 93 on Thursday, 13 October 1994. That reply drew attention to the fact that the cost of insurance is determined by the cost of claims and further stated that my Department is at present finalising proposals which seek to address the current relatively high cost of claims in this country as compared to competing economies.

The House should also be aware from the earlier reply that decisions on legislative initiatives to implement these proposals, which cover both the cost of personal injury compensation and the overhead costs associated with the settlement of personal injury claims, are a matter for the Government.

I have no plans to introduce a statutory Insurance Ombudsman's office. For the information of the House the insurance industry has already established an ombudsman service which is similar to that in operation for other financial services such as banking. Although funded by the insurers this service reports, not to the insurers, but to a council which is composed mainly of persons independent of the insurance industry.