asked the Minister for Industry and Commerce if he is aware that the insurance premiums of a company (name supplied) were substantially increased recently; if insurance premiums are subject to control under the Prices Acts; and, if not, if he will introduce amending legislation to make them subject to such control.
Ceisteanna—Questions. Oral Answers. - Company Insurance Premiums.
63.
I have asked the insurance company concerned for an explanation of the increase in this case.
The increase is in the form of an area loading applied to policyholders whose cars are garaged in the Dublin area. A number of other companies have previously applied area loadings and they have been asked to supply statistics of claims experience justifying these loadings.
While insurance premiums are not at present subject to control under the Prices Acts, as such, the power to control motor premium rates is vested in me under the Insurance Act, 1936. I do propose to provide for control of all types of insurance rates in the Prices Bill which I am having prepared in my Department at present.
Is the Minister aware that, in addition to this 17½ per cent increase authorised by the Minister in the last year or so, this firm also introduced a 20 per cent increase for Dublin garaged cars and a levy of £3 or £4 for personal belongings, bringing the total increase to anything between 40 and 50 per cent? Does the Minister see any justification for this or, under the circumstances, can he stand over it?
As I indicated, I have taken the matter up with the insurance company concerned. They have endeavoured to give an explanation as to the reason for this increased loading of 20 per cent. I am not satisfied with the explanation and I am still in communication with them. The firm made the point that the risk in the city area is greater and that is why they want to load the premium to the extent suggested. As the House is aware, an investigating committee is sitting at present. I hope that committee will be in a position to report before the end of the year and I hope it will come forward with feasible suggestions about the manner in which this whole matter of insurance can be dealt with.
Is the Minister aware that in the meantime people insured with this firm are compelled to pay this 20 per cent extra because they are Dublin garaged? Surely cars outside the Dublin metropolitan area can be used as frequently in Dublin as cars garaged in Dublin? Does the Minister not consider this unfair and can he see any justification for this compulsory £3 or £4 premium for personal belongings in cars?
This is one of the factors I am examining. From the point of view of any justification the position is that 71 per cent of all accidents reported were reported by their policyholders in the Dublin area. They have policyholders on a 50/50 basis, Dublin and country, and, if 71 per cent of the claims came from the 50 per cent in the Dublin area, quite honestly there would appear to be some justification for their attitude.
Has the Minister any comment to make on the £3 or £4 premium for personal belongings?
Yes. I am in communication with the firm. This is a compulsory factor. It is not mandatory from the point of view of the owner of the property and I am not satisfied——
One could understand it being optional.
Exactly. That is why I am looking into it.