Dáil Éireann debate -
Tuesday, 11 Feb 2003

Vol. 561 No. 1

Written Answers. - Insurance Costs.

Seán Crowe

Question:

196 Mr. Crowe asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the case of a person (details supplied) in Dublin 24 who, at the age of 21 and in possession of a full and clean driving licence, was refused quotes from three separate car insurance companies and finally received a quote for the sum of ?8,670 per annum from one company; her views on this; her achievements to date in this regard; and her plans to assist young people such as this person in getting reasonable quotes for car insurance. [3278/03]

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

Motorists in this country are legally obliged to hold third party motor insurance. In the case of a person who has been refused motor insurance by the insurance industry, or received a quotation that is tantamount to refusal he or she may refer their case to the declined cases committee, which was established to assist individuals who are unable to obtain motor insurance cover. The committee is comprised of representatives from authorised motor insurance companies under the chairmanship of the Irish Insurance Federation. The federation would be the source of further information on this matter.

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 a quid 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.

David Stanton

Question:

197 Mr. Stanton asked the Tánaiste and Minister for Enterprise, Trade and Employment the legislative or other proposals and actions taken or planned to help decrease the cost of insurance being incurred by State agencies, the business community, home owners and motorists; the timescale of same; and if she will make a statement on the matter. [3495/03]

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

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 State agencies, the business community, homeowners and motorists.

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.

The pricing and underwriting of insurance is a matter for individual insurance companies and EU law prevents me from intervening directly in the matter. However, I have made it clear that I consider there to be an onus on the insurance industry to ensure that the reforms to be taken will have the effect of significantly reducing the cost of premia to consumers.

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.