Vol. 489 No. 2
33 Mr. Durkan asked the Tánaiste and Minister for Enterprise, Trade and Employment the comparisons, if any, she has made on motor insurances costs in this country with other EU member states; the measures, if any, she proposes to ensure that these costs are on par with those of our EU colleagues; and if she will make a statement on the matter. [7614/98]
A survey comparing the price of insurance premiums, among various categories of driver in the UK, Denmark, France, the Netherlands and Ireland, was undertaken by Deloitte and Touche, in its report on an economic evaluation of insurance costs in Ireland, published in 1996. This survey was based on premium quotations, obtained from a number of insurance companies, in each of these countries, in respect of the years 1990, 1992, and 1994.
The Deloitte & Touche survey found that adults' premium rates, in the UK were 48 per cent lower, France 21 per cent lower, Denmark 10 per cent lower, and the Netherlands 6 per cent lower. The widest gap was between Ireland and the United Kingdom. Premiums in the Netherlands and Denmark, were not significantly lower than Ireland and the survey found that differences in premium rates quoted, between Ireland and the other European countries narrowed over the period 1990 to 1994. Trends in the Danish motor market indicated that premium rates there, would overtake or exceed Irish rates in the short term.
The detailed results of the comparative survey, are published in the Deloitte and Touche report.
With regard to claims comparisons with the UK market, the difference in premiums is broadly proportional to the difference in motor claims costs, in each State. Although UK drivers lodge more claims as car theft is more common in Britain, the average Irish motor claims estimate was over four times the UK average and the claims bill per registered vehicle, as a proxy for motor policy numbers, was nearly three times the UK's figure.
The differential in claims cost is attributable to a number of differences, between Britain and ourselves. Britain has relatively more claims involving low cost damage to vehicles, because they have a higher proportion of comprehensive policies, which are offered with cheap no claims bonus protection, and because they have more urban driving, characterized by low speed ‘fender bender' collisions in traffic. Ireland has a large rural road network and a lower traffic density, nine private cars per km of road as against 56 in the UK, which increases the proportion of highspeed accidents involving personal injury.
The cost of claims caused by uninsured drivers is the same in both jurisdictions. Garda Síochána statistics showed that at the time of publication of the Deloitte and Touche report, 6 per cent of Irish motorists were uninsured. According to the latest Department of Environment and Local Government statistics, this figure has now fallen to 4 per cent.
