Dáil Éireann Debate, Wednesday - 14 October 2020
124. Deputy Éamon Ó Cuív asked the Minister for Finance the steps being taken by his Department to ensure that taxi insurers are willing to insure a suitably qualified second driver on the policies issued to taxi drivers; if discussions have taken place between his officials and the insurance companies in this regard; and if he will make a statement on the matter. [30533/20]
View answerAt the outset, while I have an appreciation of the specific issue the Deputy raises, neither I, nor the Central Bank of Ireland, can direct the pricing of insurance products, as this is a commercial matter, nor can we compel any insurer operating in the Irish market to provide cover. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.
On a general level, my understanding is that insurers will use a combination of rating factors in making their individual decisions on whether to offer motor insurance cover and what terms to apply. For example, factors may include the drivers age; relevant driving experience; the age and type of vehicle; how and where the vehicle is used; the claims record; the number of drivers; the storage location; and the use of telematics. Insurers also price quotations in accordance with their specific claims experience and do not use the same combination of rating factors. In the case of taxi drivers, I understand that insurers take into account the nature of the taxi business, which involves driving for hire or reward extensively and in their view this has a much higher risk of injury claims from passengers and other road-users as a result. Accordingly, premium prices vary across the market, demonstrating why it is important for consumers to shop around on their insurance policies. It is also my understanding that the number of underwriters providing cover in the taxi market in Ireland has increased in recent years and therefore there are more competitive offerings to the taxi community.
However, in order to be helpful to the Deputy in relation to the precise query asked, my officials contacted Insurance Ireland, the representative body for insurance providers in Ireland. They stated that if on occasion a taxi operator is encountering difficulties securing a quotation, the Insurance Ireland information service is available at feedback@insuranceireland.eu to policy holders or those seeking motor insurance. They also stated that if a policyholder was to encounter this issue with their insurance provider, the Declined Cases Agreement would come into force. They believe that this process will facilitate a quotation to be released for the nominated driver, with the consent of the policyholder. In that regard, the email address for such queries is declined@insuranceireland.eu.
