Vol. 531 No. 1
54 Mr. Allen asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will set up a ministerial sub-committee to review the factors contributing to the high cost of motor insurance, particularly with regard to young drivers. [5023/01]
The high cost of motor insurance in Ireland 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's 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.
It is abundantly clear, therefore, that the primary focus of initiatives aimed at reducing the cost of insurance for motorists, including young drivers, must be on reducing the frequency of accidents and the subsequent claims. There are a number of such initiatives in place. 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.
The work of the Motor Insurance Advisory Board is aimed at providing me with information and advice on trends in motor insurance costs and with policy recommendations for addressing those costs. The issue of the high cost of insurance for young drivers is especially being examined by the board and this issue, among others, will be addressed in a report which is expected by the end of the year. Upon receipt of this report, and taking all other initiatives into consideration, I will then decide as to what further action is appropriate to reduce the cost of motor insurance.
