Vol. 518 No. 1
99 Mrs. Owen asked the Tánaiste and Minister for Enterprise, Trade and Employment the details of the declined cases agreement between her Department and the Irish Insurers Federation which deals with motorists who have difficulty in obtaining a motor insurance quotation and if she will make a statement on the matter. [11044/00]
Motorists in this country are legally obliged to hold third party motor insurance. Irish insurers accept or reject individual risks on the basis of their underwriting experience. If a motorist experiences difficulty in obtaining a motor insurance quote, one can be sought through the declined cases committee, which was established in 1981 under an agreement between the then Minister for Industry, Commerce and Tourism and the authorised motor insurance companies, to consider risks which have been refused by individual insurance companies.
Many of the motorists who use the declined cases agreement are forced to do so because of their poor claims record and-or motoring convictions. However, under the agreement the declined cases committee is empowered to intervene if it considers that a quote charged under the agreement procedure is so high as to be tantamount to a refusal of cover. If the committee considers a complaint is valid in this regard it may indicate a maximum premium to the insurer along with other terms that may be imposed.
The committee is composed of representatives from insurance companies under the chairmanship of the Irish Insurance Federation. The authorisation to carry out motor insurance business in the State is subject to participation in the declined cases agreement.
The procedure is that before a case may be considered under the agreement, it is necessary to forward five written refusals from motor insurers directly to the Irish Insurance Federation indicating the order in which the companies were approached together with details, where applicable, of previous insurance held.
The declined cases committee may, at its own discretion, refuse to instruct an authorised insurer to offer a quote for a particular risk if it is considered to be contrary to public interest to do so. The most recent returns available show that between 1994 and 1999 the declined cases committee processed more than 2,000 claims which were broken down as follows:
|
Year |
Number of cases processed |
|
1994 |
371 |
|
1995 |
350 |
|
1996 |
348 |
|
1997 |
306 |
|
1998 |
297 |
|
1999 |
329 |
