Dáil Éireann debate -
Thursday, 22 Jun 2000

Vol. 521 No. 6

Written Answers. - Car Insurance.

Ruairí Quinn

Question:

67 Mr. Quinn asked the Tánaiste and Minister for Enterprise, Trade and Employment the reason car insurance companies are not obliged to detail all claims on a non-claims bonus certificate; the plans to ensure that this is done in the future; if her attention has been drawn to the fact that drivers can have their insurance revoked due to non disclosure of relevant information on a no-claims bonus certificate; and if she will make a statement on the matter. [17841/00]

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

The use of no claims bonus, NCB, schemes by insurers is universal throughout the EU and is not subject to state regulation. The format of a NCB certificate can vary across different insurance companies with some giving a full history of claims if applicable while others simply certify that the policyholder is in possession of a NCB.

It is worth pointing out that the basis of the insurance contract is the proposal form drawn up by the insurer and signed by the insured. There is an obligation on the insured to complete this proposal form accurately and honestly to the best of their ability as non-disclosure of material facts on a proposal form is a serious issue and can result in a policy being revoked.

It is important to remember, in the context of disclosure, that possession of a NCB certificate does not imply, and should not be interpreted as being equivalent to having, a claims free history. For example, an individual may have a short history of claims and, by virtue of having protection on their NCB, possess a NCB certificate.

Regulations to introduce greater transparency into insurance transactions will be introduced by me, as soon as practicable, following enactment of the Insurance Bill, 1999, which is currently before the Oireachtas.