Dáil Éireann debate -
Tuesday, 11 Feb 2003

Vol. 561 No. 1

Written Answers. - Insurance Costs.

Martin Ferris

Question:

202 Mr. Ferris asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will make a statement on the legality of the position where an insurance company is refusing to provide cover for a second named driver unless the policy holder also insures their home with the same company. [3767/03]

Tánaiste and Minister for Enterprise, Trade and Employment (Ms Harney):

Recommendation No. 18 in the motor insurance advisory board, MIAB, report published last year, recommends that insurers desist from any practice of requiring collateral business to be placed with the company before a motor quotation is supplied and that this practice be reviewed by the Competition Authority should it persist.

In the action plan drawn up by the high-level implementation group for the implementation of the MIAB recommendations, the action to be taken by the insurance industry, together with the target timescale, is as follows: collateral business as a precondition for motor quotes will not be required as from 1 August 2002; in accordance with recommendation No. 18, the Competition Authority should be informed of cases where this practice still persists.