Written Answers. - Motor Insurance.

Michael P. Kitt

Question:

579 Mr. M. Kitt asked the Minister for Enterprise and Employment if his attention has been drawn to reports (details supplied) that motor insurance premia could rise by the end of 1996; if education/training programmes could be considered as advocated by the motor insurance industry; and if he will make a statement on the matter. [16262/96]

My Department is aware of recent reports concerning possible increases in motor insurance premia by individual insurance companies. The Deputy may recall that reductions in motor insurance premia were announced by certain Irish insurers in 1995 and 1996 on the basis of improved underwriting performance. The escalation of road accidents in the course of 1996 has caused the motor insurance industry to anticipate a rise in the number and cost of claims and to make provision to meet this rising cost by increasing premia.

The report of consultants on an economic evaluation of insurance costs includes recommendations aimed at improving the safety performance of young drivers including the introduction of educational courses in driving-related skills at secondary school level. The conclusions and recommendations of the consultants are now under examination.