Vol. 550 No. 2
75 Mr. P. Carey asked the Tánaiste and Minister for Enterprise, Trade and Employment if insurance companies are obliged to give a reason for refusing to quote a policy holder; if they quote a high figure, and it is impossible for a policy holder to pay the figure in a lump sum, if they can do so by instalment; and if she will make a statement on the matter. [8235/02]
The pricing and underwriting of insurance is a matter for individual insurance companies and EU law prevents me and the Department from intervening in relation to the matter of premium levels or in respect of what risks they are prepared to underwrite. Insurers make decisions on provision of cover based on their assessment of that particular risk.
While I understand that insurers would normally provide information to prospective policyholders in relation to their assessment of a policy proposal, there is no obligation on them to explain why they might refuse a quotation in a particular case.
76 Mr. P. Carey asked the Tánaiste and Minister for Enterprise, Trade and Employment if it is lawful for an insurance broker (details supplied) in Dublin 4 to place a condition on the renewal membership of a client that they pay an affiliation fee to a particular association; and if she will make a statement on the matter. [8236/02]
Motor insurance schemes whereby parties signing up to them avail of the bulk purchase of insurance cover and the consequential savings are an established feature of the insurance market. A critical aspect of such schemes is the fact that the association or organisation in question is able to validate the bona fides of their members seeking the cover. This is an assurance to the underwriter that the member being assessed for cover, for example a taxi or hackney driver, is operating within specified guidelines and requirements and therefore represents a risk improvement to the underwriter. Such arrangements are commonly negotiated by associations and organisations across all professions and industries. I would see such schemes as being of benefit to all members of associations and organisations whether these members be long-term or new members.
