Vol. 526 No. 3
152 Mr. N. Ahern asked the Tánaiste and Minister for Enterprise, Trade and Employment the plans she has to take any measures or have commissioned any report, which might reduce car insurance for young people; and if she will make a statement on the matter. [26235/00]
In 1996, following an extensive period of research, the Deloitte & Touche Report on Insurance Costs in Ireland was published. The report indicated that high insurance costs in Ireland were related to high claims costs. In particular, the report found that the average cost of an insurance claim for 17 to 24 year old drivers was twice that for the 36 to 40 age group. The report also noted that motorists in the 17 to 24 age group were responsible for over three and a half times the total average claims costs incurred for motorists in the 36 to 40 age group.
Although this report remains a valuable source of information about insurance costs in Ireland, I re-established the Motor Insurance Advisory Board in 1998 to provide me with more up to date information on trends in motor insurance costs and with policy recommendations for addressing those costs.
From the information available from the Deloitte & Touche report, clearly, the primary focus of initiatives aimed at reducing the cost of motor insurance for young drivers must be on reducing the frequency of accidents and the associated cost of claims. The key to this is to create appropriate conditions for improving their standards of driving and their appreciation of road safety. The Irish Insurance Federation, in conjunction with the driving instructors register, has introduced a scheme of insurance premium discounts for the young driver on completion of a required number of driving lessons. The National Safety Council, in co-operation with the Garda, continue to promote anti-speeding and anti-drink driving media campaigns, including road safety educational programmes for secondary school students.
Further measures may be expected as a result of the work of the special working group, set up to consider the establishment of a personal injuries tribunal. On the basis of that group's second report it is hoped to bring proposals to Government as quickly as possible with the objective of putting arrangements in place to reduce the costs of delivering personal injury compensation.
