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Dáil Éireann debate -
Tuesday, 20 Oct 1998

Vol. 495 No. 4

Written Answers. - Motor Insurance.

Richard Bruton

Question:

85 Mr. R. Bruton asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the fact that there is one company in the Irish insurance market quoting car insurance for persons with a disability; if the declined cases agreement applies in respect of persons with a disability; if insurance companies unwilling to quote for this business can be forced to make an insurance offer which constitutes a fair load; and her views on whether present practice constitutes a breach of spirit or of the law on equal treatment. [20157/98]

I understand that the present situation in relation to disabled drivers is that while only one motor insurer is currently quoting for new business, other insurers are providing insurance cover for disabled drivers under existing policies.

We are not legally empowered to compel authorised motor insurers to accept or reject individual insurance risks or classes of insurance, or to impose guidelines regarding conditions or loadings attached to such risks. Risk assessment of individual applications for motor insurance is strictly a matter for each insurance company based on its underwriting experience and prudential requirements. The underwriting results for motor insurers have been particularly poor over the past two years. Insurers' underwriting experience indicates that drivers with certain disabilities represent a greater than average risk, particularly where the disabled person is a learner or young inexperienced driver. In these circumstances, assessment of disabled drivers by motor insurers as constituting a higher risk category could hardly be regarded as breaching the spirit or the law on equal treatment.

The subject of loadings applied to disabled drivers, has been pursued by the Department on many occasions, both with individual insurance companies and with the Irish Insurance Federation. Following referral of the subject of disability loadings to the former Motor Insurance Advisory Board, it was agreed that provided the driver remained claims free, a maximum disability loading of 20 per cent would apply in the first year of insurance. This would decrease to 15 per cent in the second year of claims free insurance and no loading at all would apply thereafter provided that the driver remained claims free.
Our understanding is that these arrangements are being operated satisfactorily by authorised motor insurers. The Irish Insurance Federation would look at individual cases where the arrangements are not being observed. However the arrangements do not apply in the cases of degenerative illnesses. They are also subject to the insurer's right to call for a medical examination.
The Deputy may be aware that I recently reconstituted the Motor Insurance Advisory Board. The question of insurance companies' treatment of disabled drivers is one of the areas that will usefully be looked at by the new enlarged board.
The present criteria used for assessing disabled drivers as an insurance risk are a considerable improvement on that which previously applied. Prior to the introduction of the current system loadings ranged from 10 per cent — 150 per cent depending on the insurer in question and the nature of the disability.
The declined cases agreement applies in all cases where a motor insurance quote has been refused, including cases of disabled drivers, and a quote will be available, subject to the loading system referred to above.
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