I understand, from the Irish Insurance Federation, that problems concerning the availability of insurance for public service vehicles arises from time to time with first time policyholders with no previous experience in a particular associated trade or service. Insurers will regard such policyholders as a higher risk category and accordingly accept or reject such individual risks on the basis of their own underwriting experience.
I should point out that the Declined Cases Committee was established in 1981 under an agreement between the then Minister for Industry, Commerce and Tourism and the authorised motor insurance companies to consider motor insurance risks which have been refused by individual insurance companies. Similar mechanisms exist throughout the EU to deal with so called, aggravated risks. The committee is composed of representatives from the authorised insurance companies under the chairmanship of the Irish Insurance Federation. The agreement provides that, before a case may be considered by the committee, it is necessary to obtain written refusals to quote from five authorised motor insurers. The committee then nominates one of the authorised insurance companies, normally the first company approached, to quote for the risk.
I understand from the Irish Insurance Federation that recently, an increasing number of hackney and taxi drivers have approached the Declined Cases Committee with a view to obtaining a quote for motor cover. The federation has confirmed that such motorists have received a quote under the procedure of the declined cases agreement.
