asked the Minister for Industry and Commerce if he is aware that insurance companies are insuring motor vehicles at the insurer's estimated value; that when the vehicles are accidentally damaged the companies claim the right to pay insurance at what their assessor estimates as the pre-accident value; that they write-off a vehicle even if the value is only a fraction of the amount it is insured for and the vehicle may be repaired for a relatively small sum; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Motor Vehicle Insurance.
55.
The principles governing the procedure for the valuation of insured property are long established.
It is a well understood principle that in the event of total loss the insurance company cannot be required to pay more than the actual value of an insured vehicle no matter what value the owner put on it for insurance purposes.
I am not aware that insurance companies make a practice of writing off vehicles in the circumstances referred to by the Deputy.
In any event these are matters which concern the detailed administration of insurance business and I do not think it desirable that I should intervene in them.
Does the Minister not agree that it is most unfair and unjust that insurance companies will accept premiums on a motor vehicle at a value of, say, £700 and after several years, in the event of an accident, write off the car at £100? Would the Minister consider insisting that the assessor should inspect the car before it is insured so that a fair premium will be charged rather than have the present position in which insurance companies are raking off at the expense of the public?
That sounds rather like argument.
Any person who insures a car at the same value after several years of use is not having regard to his own obligations to himself.