Dáil Éireann debate -
Wednesday, 27 Jun 2001

Vol. 539 No. 2

Written Answers. - Motor Insurance.

Noel Ahern

Question:

61 Mr. N. Ahern asked the Tánaiste and Minister for Enterprise, Trade and Employment if she can take any measures or has commissioned any report which might reduce car insurance for young people; and if she will make a statement on the matter. [19291/01]

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

The matter of the relative high costs of insurance in this country remains an issue of concern for our Department. I appreciate the situation is particularly difficult for young drivers seeking motor insurance. In 1996, Deloitte and Touche were commissioned to report on insurance costs in this country. Their report found that the main contributory factors to rising premium costs were the high legal costs component of small claim settlements; the faster rate of medical cost inflation and the high level of general damages awards relative to special damages in smaller claims.

Although this report remains a valuable source of information about insurance costs in Ireland, in 1998 I re-established the Motor Insurance Advisory Board (MIAB) to provide me with more up to date information 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 especially is being examined by the board. The MIAB's final report is expected at the end of this year and in the light of the report's recommendations, I will take whatever further action is appropriate.

Following a Government decision earlier this year, an interdepartmental implementation group has been established to progress the establishment of a personal injuries assessment board (PIAB). I am confident that the setting up of the PIAB will achieve a reduction in the delivery costs of personal injury compensation for work related injures in its initial term of operation and later in motor injury cases. While the Government does not wish to rule out any particular course of action, EU law prevents us from requiring the prior approval of scales of premium.