Dáil Éireann debate -
Thursday, 17 Feb 2000

Vol. 514 No. 5

Written Answers. - Insurance Industry.

Noel Ahern

Question:

99 Mr. N. Ahern asked the Tánaiste and Minister for Enterprise, Trade and Employment the situation with motor insurance and agreements with the insurance industry in relation to loading policies where the applicant has an endorsed driving licence; if there is an agreement or guidelines for the size of the loading for different offences; if a 600% loading for an endorsement for failure to display tax and insurance discs seems in order; and if she will make a statement on the matter and outline procedures for a person to get a fair quote. [4793/00]

Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy)

The use of loadings by insurers is universal throughout the EU and is not subject to State regulation. In fact, EU law on insurance prevents Governments or insurance regulators from specifying policy prices or terms. Accordingly, there is no agreement or guidelines concerning loadings. Furthermore, I would regard any such agreement as anti-competitive and therefore not in the interests of consumers affected.

Motor insurance premia are normally based on underwriting experience. Any changes in circumstances affecting the risk insured would have to be assessed by the insurer from an underwriting standpoint. The premia charged and the availability of a quote will reflect any material increase in the risk. While it is a matter for the insurance company to judge the risk, in my view, failure to display an insurance disc is a serious offence.

In cases of refusals to quote for motor insurance, the declined cases agreement between the Minister for Enterprise, Trade and Employment and the Irish Insurance Federation offers the motorist the opportunity of a motor quotation subject to certain criteria.