asked the Minister for Industry and Commerce if, pending the examination by him of the accounts of the insurance companies, he will make an Order preventing the proposed increases in motor insurance premiums.
Ceisteanna—Questions. Oral Answers. - Motor Insurance Premiums.
The Prices Advisory Body is arranging to inquire into the justification for the increase in premiums for motor vehicle insurance which come into effect on the 1st December. On completion of that inquiry, I will consider what steps are appropriate in this matter, but in the meantime, I do not propose to make an Order as suggested by the Deputy.
Would the Minister consider making representations to the insurance companies to defer the increase in premiums until that inquiry has been completed?
My difficulty is that the information which I have obtained would appear to justify the increase. It is subject to checking when the statutory accounts of these undertakings for the year 1950 are submitted. They are only in the course of submission now. The course suggested by the Deputy would have the effect that, if it were found by the Prices Advisory Body that these increases were justified and if they were postponed, it might mean a higher increase later.
I presume the Minister is aware that the general impression is that the increase is not regarded as reasonable in view of the increased business which the insurance companies are doing?
The statistics which I have received would appear to justify them.
Could the Minister indicate any particular headings under which there would appear to be a case for an increase?
The number of claims in relation to premiums and the cost of settling claims due to the rise in prices.
Not all these companies keep their accounts in the one form. Many deal with other classes of business.
They have to submit statutory returns in respect of this business.
A close examination of these statutory returns will, I think, give rise to doubts in the Minister's mind as to whether, in fact, there is an absolute clear-cut division between this class of business and the other classes of business. Having regard to the fact that they are all done under the one roof and by the same officials in many cases, would the Minister bear it in mind to have a very close examination of these accounts to ensure that they are not given the complexion that they do not appear to balance for the purpose of getting the extra 25 per cent. premium?
The Deputy can be assured that the investigation to be made by the Prices Advisory Body will be a thorough one.