asked the Minister for Industry and Commerce if he will take steps to enable him to refer the proposal to increase premiums for motor insurance to a Prices Advisory Committee for public investigation and report.
Ceisteanna—Questions. Oral Answers. - Motor Insurance Premiums.
32.
I would refer the Deputy to Section 5 (h) of the Prices Act, 1958, which excludes charges for insurance from the scope of that Act. There is power, which has not up to now been utilised, to control premium rates for motor vehicles under the Insurance Act, 1936.
In reference to the impending increase in premium rates for private cars, I may say that the insurance companies informed me, in advance, of their intention to increase these rates. At my request, they provided factual data in support of their proposals, and the companies were able to demonstrate conclusively that motor business is being run at a loss. While I am naturally anxious that the insurances charges should not weigh too heavily on the motor users, it must be recognised that insurance companies cannot be expected to continue to provide the service if the charges are unremunerative. I will, however, keep the situation under review.
Is the Minister aware that on a previous occasion when the insurance companies proposed to raise their charges the initial claim was for a 25 per cent. increase which, on subsequent investigation, was reduced to 12½ per cent.? Is the Minister satisfied that in this instance the insurance companies' claims are justified by the figures and, if so, will he make the figures available for public examination?
The last time there was a proposal—the time to which the Deputy refers—the application then was for a 27½ per cent. increase and the Prices Advisory Body recommended an increase of 20 per cent. As a result of the negotiations between the officers of my Department and the insurance companies, I am satisfied——
Would the Minister say on what date the inquiry was held?
The Body recommended in June, 1956, that an increase of 20 per cent. in the premium rates be granted as from 1st July, 1957.
Would the Minister look at the administrative expenses?
In view of the fact that this is a necessary burden upon motor car owners and vehicle owners, will the Minister consider having the matter publicly investigated in order to allay any public uneasiness about the matter?
I appreciate the importance of motor car insurance to the ordinary public. I indicated in my reply and on a previous public occasion that I would keep the situation under review. If I find that an inquiry such as the Deputy suggests would be warranted, I certainly would consider the matter very favourably.
How do the insurance companies exist in view of the fact that they always allege they are losing heavily on motor car insurance and workmen's compensation?
I do not know if that is true in regard to workmen's compensation but they have been losing on motor car insurance over a five year period.
Cognisance must be taken of the amount of commission paid on premiums.