Vol. 530 No. 1
102 Mr. Kirk asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will ask the insurance federation if they will consider introducing on a pilot basis, a scheme for young drivers to have a speed restrictor fitted, in order to provide a more competitive insurance quote; and if she will make a statement on the matter. [3324/01]
I am very conscious of the relatively high cost of motor insurance in Ireland and, in particular, the cost for young drivers. This high cost is directly attributable to the cost and frequency of claims incurred by insurance companies in settlement of claims following road accidents. This factor is especially relevant to young drivers, whose adverse claims experience contributes to their consideration by motor insurance companies as a high risk category. The National Roads Authority Road Accident Facts Report for 1999, showed that 40% of drivers killed or seriously injured on Irish roads were between the ages of 18 and 34.
I would therefore welcome any initiative that might contribute to a reduction in the number of road accidents, especially those aimed at improving the safety record of young drivers, which can be expected to lead to a reduction in premiums. However, the area of insurance underwriting is a matter for the insurance companies themselves.
EU law prevents me from intervening in the underwriting and pricing of insurance. I also have responsibilities in law for the solvency of insurance companies. It would be for the insurance industry to consider what initiatives might be worthwhile of detailed examination, whether they would be workable and what impact they might have in relation to the underwriting of risk for a particular group of people.
