Skip to main content
Normal View

Insurance Industry.

Dáil Éireann Debate, Thursday - 9 December 2004

Thursday, 9 December 2004

Questions (168, 169)

Olivia Mitchell

Question:

165 Ms O. Mitchell asked the Minister for Transport the amount of each of the 20 highest personal injury claims as a result of motor accidents which were cited by the insurance industry and resulted in his recent amendment to the Road Traffic Bill 2004 seeking to limit insurer liability. [32473/04]

View answer

Olivia Mitchell

Question:

166 Ms O. Mitchell asked the Minister for Transport if he will publish the submissions by the insurance industry and all relevant documentation in respect of the proposed removal of unlimited liability motor insurance. [32474/04]

View answer

Written answers

I propose to take Questions Nos. 165 and 166 together.

The purpose of the recent amendment which I introduced to the Road Traffic Bill 2004 is not to limit claims against motor insurance companies but to protect the interests of motorists.

Under the Road Traffic Act 1961, users of mechanically propelled vehicles must be insured without limit against liability for personal injury to third parties in a public place. The insurance industry has informed me of its concerns about not being in a position to provide unlimited cover for motorists as its own reinsurers are indicating unwillingness to continue the necessary unlimited cover for the companies themselves.

I recognise the value of insurance cover for unlimited liability for personal injury. However, I have to ensure that adequate levels of cover continue to be available in the event of substantive reinsurance difficulties. For that reason it is prudent to provide for a legal framework to deal with the situation where insurance companies could no longer provide unlimited cover.

I am aware of concerns about introducing a limit on the amount of cover required and I share those concerns. The amendment proposed in the Road Traffic Bill 2004 now includes a provision requiring that regulations to specify an upper limit on the amount of motor insurance cover required by law would be subject to the approval of both Houses of the Oireachtas before they could take effect.

Information regarding personal injury claims against individual motor insurers is not compiled in my Department.

I am arranging to have copies of the submissions from the insurance industry and all the relevant documentation in the matter sent to the Deputy, subject to any necessary safeguards on personal information and legal privilege.

Top
Share