Dáil Éireann Debate, Wednesday - 12 April 2017
112. Deputy John Brady asked the Minister for Finance his views on whether a motor insurance company (details suppled) has the right to refuse to transfer a no-claims bonus from a person's limited company to the same person when the limited company ceases to exist; if the company has the right to do so; the reason for this; and if he will make a statement on the matter. [18424/17]
View answerAs Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to itervene in the decision of an insurance company not to transfer a no claims bonus.
I am advised that insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. These terms can include issues such as the no claims bonus, the age of the driver, as well as the type and age of car, the claims record, driving experience and penalty points of the driver, the number of drivers, how the car is used, etc. My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience.
Finally, the Deputy should note that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. Insurance Ireland can be contacted at feedback@insuranceireland.eu or 01-6761914.
