asked the Minister for Industry and Commerce the number of complaints received by him to date concerning the question of reinsurance of motor policies with insurance companies where policies have been due for renewal; and if he will make a statement concerning any further discussions between him and the insurance companies concerning their refusal to reinsure certain categories of persons except at vastly increased rates.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
20.
Since the answer which I gave to a question on this subject on 15th April, 1970, I have received some 60 written complaints about difficulties in connection with the renewal of motor insurance policies. Where it appeared that a breach of the arrangements governing the control of motor premium rates was involved, I had the matter taken up with the companies concerned and secured reductions where appropriate.
In the case of one company, there was a doubt as to whether they would renew their motor insurance policies and I asked them to extend cover temporarily on the existing basis until such time as a renewal premium (based on up-to-date information secured regarding the risk) was quoted by the company themselves or until cover was secured elsewhere. The company agreed to do this.
I put it to the Minister that the 60 complaints he has received from the general public since 15th April concerning insurance are but a small indication of the tremendous public dissatisfaction and reaction against the penal and unilateral jacking-up of premiums——
We cannot have a speech at Question Time.
Will the Minister not insist that the insurance companies adhere to the views which he has conveyed to them? There is complete disregard for the Minister's views and for the views of the public who have been literally taken for a long ride by the insurance companies in the last few months.
Has the Minister any power to deal in an effective way with the companies? The Minister has used his influence in the 60 cases that have been brought to his notice and he has got action on them. Has the Minister power to ensure that there will not be a repetition of the way the insurance companies treated the people—which they corrected subsequently in some cases? As Deputy Desmond has said, this practice is widespread.
It is because of the difficulties in this regard that I have decided to set up a committee to investigate the entire matter of insurance and the application of insurance, with special reference to motor insurance. I hope to be in a position in the next two weeks to announce the personnel of this committee. One of the requests I shall be making to the committee is to let me have a report on motor insurance at the earliest possible moment. The curtailments that exist in this regard in relation to my being able to take appropriate action is one of the reasons I am very anxious that something positive would be done.
Will the committee investigate in public?
There is no reason it should not do so.
(Cavan): Would the Minister be interested in hearing of a case——
I have already heard of 60 cases and one more will not worry me.
(Cavan): This is a case where an individual was insured for open driving at a premium of £12. His son, a young person, was involved in a fatal accident and the terms offered by the insurance company for renewal of insurance was a policy confining the driving to the father and increasing the premium from £12 to £102. Will the Minister not do something to put an end to such practice?
It is quite obvious that I should need more details of that kind of complaint but I certainly would look into the matter if these details were given to me.
Is the Minister aware that even when there is no claim involved, insurance companies are increasing premiums and are insisting on a minimum age of 30 years before renewing insurance premiums? Would the Minister not agree that this is ludicrous?
The House will have gathered that I am not happy with the situation.
The Minister's predecessor was not happy with the situation six months ago when these matters were brought to his notice. He said exactly the same as the Minister has now said and we are still in the same position.
We are at the stage where there will be a committee functioning on this matter in a very short time.
If the Dáil is still in session in a month's time, I shall ask another question in connection with this matter.
There is no doubt about that.
Would the Minister not agree that the situation is very serious in view of the fact that the law compels people to insure their vehicles and they cannot get this insurance?
I have not heard of a case where a person cannot be insured. The Minister for Local Government looks after this and if there is difficulty in that regard he has an ad hoc arrangement with insurance companies.
May I ask the Minister a question?
We cannot debate this matter all day. There are 99 questions on the Order Paper.
Does the Minister consider it proper for an insurance company in the case of lorries to add a 50 per cent increase, giving the reason that it is due to the nature of the work? In many cases the work has not changed, it has been the same for a number of years.
I have no doubt that every Deputy could quote individual cases as Deputy Fitzpatrick did——
Why not nationalise them as some of the State-sponsored bodies——
The Deputy assumes that would solve everything.
If that were done they would come to heel very quickly.
Does Deputy Cott wish to put the final supplementary?
Can the Minister state if there is any limit on the premiums insurance companies can charge and if he has any control in the matter?
That is indeed a wide open question. Obviously there cannot be when what is being covered is unlimited in its own way.
We cannot have any further supplementaries on this question. I am calling Question No. 21.
21.
asked the Minister for Industry and Commerce if he is aware that insurance companies have agreed amongst themselves that a taxi which instals a two-way radio is deemed to be converted from a private hire vehicle to a public hire vehicle, as a consequence of which the insurance premiums for such taxis are doubled or trebled; and, having regard to the fact that installation of a two-way radio cannot make a taxi more accident prone, if he will take steps to prevent insurance companies increasing insurance premiums for causes unrelated to possible accident involvement; if not, why; and if he will make a statement on the matter.
I would refer the Deputy to replies which I gave to questions on this matter on 8th April, 1970.
I have not, in the meantime, received any complaints about excessive increases in premium rates being charged to taxi owners where two-way radio equipment was installed. I understand that no agreement has been made by the insurance companies among themselves that such taxis should be deemed to be public hire vehicles.
I understand that a taxi fitted with a two-way radio is likely to carry more passengers than a taxi not so equipped and that, consequently, the risk is greater. I must accept the right of insurance companies to impose a reasonable loading in a case where the risk is increased.
If, in any individual instances, prohibitive rates are being charged they should be referred to the Minister for Local Government who has machinery for dealing with such cases.
22.
asked the Minister for Industry and Commerce if he has seen reports that further increases in insurance premiums were being considered; and if he will make a statement on the matter.
I have seen no reports of possible increases in insurance premiums in this country.
Is the Minister seriously telling me that he has not read newspaper reports to the effect that it is proposed to increase insurance premiums in general, not just motor insurance alone?
No, I have not. I am serious in saying that and I have access to the same dailies as the Deputy.
I read it in a paper last week.
It was mentioned in a London newsletter in connection with insurance policies in Britain.
It was published in the Evening Press.
The reference in the Evening Press was to a statement made by the chairman of Lloyds in London but it has nothing to do with insurance in this country.