Vol. 541 No. 4
194 Ms Shortall asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans to offset the escalating cost of motor insurance on older drivers; if her attention has been drawn to the fact that in some cases motor insurance premia for drivers with no-claims bonus and with over 60 years driving experience have increased by 28%; if price controls are included in her plans; and if she will make a statement on the matter. [23262/01]
Decisions on the underwriting of insurance risks and setting of premiums are matters for judgment by individual private insurance companies and EU law prevents us from having any direct function in relation to them. I cannot therefore legally introduce controls on scales of premiums. Insurance price movements are normally based on the underwriting experience of companies, as well as the trends in the level, frequency and cost of claims. The high transaction cost of claims, particularly legal costs, has been identified as one of the major factors driving up the cost of personal injury settlements. The decision of the Government to establish a personal injuries assessment board, seeks to address the issue of the high cost of settling claims, by achieving a reduction in the delivery cost of personal injury compensation.
The Motor Insurance Advisory Board has been charged with advising me on motor insurance costs and in particular with examining the relationship between the incidence of claims and the premiums charged for various classes of policyholder identified by age and sex. The final report of the board is expected at the end of this year and any further action will be decided upon after it has been received and analysed.
