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Dáil Éireann debate -
Tuesday, 11 Feb 2003

Vol. 561 No. 1

Written Answers. - Insurance Costs.

Charlie O'Connor

Question:

192 Mr. O'Connor asked the Tánaiste and Minister for Enterprise, Trade and Employment her further plans to deal effectively with the issue of car insurance for young people; if her attention has been drawn to the continued concerns of many in this regard; and if she will make a statement on the matter. [3180/03]

I am very much aware of the high cost of insurance in the State and I am concerned about the difficulties this is causing for many people including young drivers. On 25 October last, I announced my programme for fundamental insurance reform. The programme reflects the commitments given in An Agreed Programme for Government and comprises a comprehensive set of inter-related measures designed to improve the functioning of the Irish insurance market. The key measures include: establishment of a ministerial committee, chaired by myself, to oversee implementation of the reform programme, including the 67 recommendations in the Motor Insurance Advisory Board, MIAB, report; publication of the action plan to give effect to the MIAB recommendations within a target timeframe; establishment of the Personal Injuries Assessment Board, PIAB, on an interim basis, pending preparation of the necessary legislation to put the PIAB on a statutory footing; and publication of the report of the Implementation Group on the PIAB.

While EU law precludes the imposition of price controls on insurance, I have made it clear that I expect aquid pro quo from the industry in response to my reform programme.
My Department in conjunction with the Competition Authority finalised terms of reference last December for a study being undertaken into the competitiveness of the Irish insurance market. The terms of reference are available at www.entemp.ie and www.tca.ie.
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