asked the Minister for Industry and Commerce the names of the members of the committee on insurance; the date the committee was set up; the number of meetings held; and if an interim report will be issued.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
26.
As there are 22 members on the committee of inquiry into the insurance industry, I propose, with your permission, a Cheann Comhairle, to have a list of the members circulated with the Official Report.
The committee was set up on 11th August, 1970: 26 formal meetings of the committee, 47 formal meetings of sub-committees, as well as some 32 informal meetings, have been held to date. It is expected that an interim report on motor insurance will be issued about the end of July.
Following is the list:
Names of Members of Committee of Inquiry into the Insurance Industry.
J. O'Connor, Chairman;
J. G. Carr,
H. D. Cashell,
P. Crowley,
B. Earley,
H. Ellis,
J. Flood,
M. P. Fogarty,
N. Harris,
H. Hancock,
M. J. Harrington,
Al. Kelly,
L. Keogh,
N. MacLiam,
J. McMahon,
J. Moher,
J. Moore,
C. ÓDochartaigh,
M. O'Donoghue,
R. O'Donohue,
D. Weston,
R. P. Willis,
Mr. J. J. Stacey, deceased, was replaced by Mr. E. J. Gray (now also deceased) in April, 1972.
The Secretary to the committee is Mr. H. McGloin.
Is the Minister aware of the desirability of getting reports from this committee as early as possible? Are the Minister, the Minister for Industry and Commerce and the Minister for Local Government aware of the difficulties which face many people who are trying to get insurance at present?
There are further questions on the Order Paper relating to that matter.
I am very pleased that there are.
Is the Minister aware that there is a nationwide demand for a detailed survey into the activities of the insurance companies and the manner in which they levy premiums as they think fit?
These are separate questions.
Is it not time that we demanded action from the indolent Department handling this matter——
We cannot debate the whole matter of insurance. This is a statistical question asking for certain information and that is all.
Which I am not getting. I want to impress on the Minister the nationwide demand——
I am calling Question No. 27.
The committee which is the subject of this question is investigating all these matters the Deputy is complaining about.
I am not satisfied. This committee was set up in 1970. I will not take these offhand answers from the Minister. I want a more detailed approach to a question that concerns the whole nation.
The Deputy may not discuss this matter.
There is more than Limerick city in this.
I know there is more than Limerick city in this.
Deputies wish to have questions answered which have been on the Order Paper for three weeks and this is not the way to go about it.
With all due respect, I have had questions on the Order Paper for as long as three weeks, too. I am not getting the type of satisfaction I want and the whole nation wants.
Question No. 27.
27.
asked the Minister for Industry and Commerce whether he is aware that owners of cars six years old and upwards have difficulty in getting insurance cover; and what action he proposes to take in the matter.
I am not aware that owners of cars over six years old are experiencing special difficulty in getting insurance cover but, because of the greater danger of mechanical failure, most insurance companies charge higher premiums for old cars.
As the Deputy is no doubt aware, the Minister for Local Government has special machinery available for helping to secure cover for persons who have been refused cover or who have been quoted a premium so high as to be tantamount to refusal and any cases of difficulty in getting cover should be referred to him.
Are the Department of Industry and Commerce aware that certain insurance companies are insisting on a detailed certificate being issued by a reputable firm before they will agree to insure cars six years of age or over? Does the Minister consider that this is reasonable in the case of privately owned cars which were insured by the same firm for up to six years?
I am not aware that they require these certificates but if they do it would not surprise me. I think it is a reasonable enough requirement.
Privately owned cars after six years?
Yes, I would think so.
28.
asked the Minister for Industry and Commerce whether he is aware of difficulties being encountered by motorists in obtaining insurance cover because of more stringent assessing rules; and whether he is satisfied that such difficulties are not responsible for the increasing number of uninsured cars on the road.
I am aware of difficulties being experienced by certain motorists in obtaining insurance cover because of the more stringent underwriting practices which have been adopted by some insurance companies following adverse claims experience on motor insurance. I must accept the right of companies to impose reasonable additional loadings on premium rates in cases where the risk involved is greater than normal. I am not empowered to compel a company to underwrite a particular risk, but, as the Deputy is no doubt aware, the Minister for Local Government has special machinery available for helping to secure cover for people who have been refused cover or who have been quoted a premium that is tantamount to a refusal.
Although I know there has been an increase in prosecutions for uninsured driving, I am not in a position to say whether there has been an increase in the number of uninsured cars on the road, or how great the increase may be. Driving a car without insurance cover is highly irresponsible and not to be excused by difficulty in getting cover.
Is the Minister not aware, as the question implies, of the difficulty experienced by many motorists in getting cover from existing insurance companies if claims are made against them in respect of even relatively small accidents? Is he further aware that it is impossible for the average motorist to get cover from another company? One will not accept the other's business.
I am aware that certain people have difficulty but, if they are refused cover or if the premium quoted is prohibitively high, it is open to them to apply to the Minister for Local Government who, in turn, takes up the matter with the undesirable risks committee of the accident offices. Usually it is possible, I think, to secure a satisfactory outcome through that negotiating position.
Is the Minister aware that——
Could we get on with questions?
This is a very important matter.
The other questions are equally important.
I will not dispute that. Is the Minister aware that companies have quoted premiums which are tantamount to direct refusals to applicants?
Nobody knows that better than the Minister. He is associated with an assurance company.
Is he aware that when these people appeal to the Minister for Local Government the machinery in that Department seems not to be oiled because it does not work at all as far as I know and, therefore, a number of motorists are held up to ransom. It is pure black-mail. They will tell you, "Go and do your business somewhere else if you are not satisfied with us," but any other company will not take you because they have this private arrangement. Is the Minister to take any steps about this position? Motorists are being put off the roads for being involved in relatively minor accidents. I know of four such cases in my constituency.
They are cases which the committee who are about to report are considering. These problems might be discussed more fruit-fully after the recommendations of that committee have been put before the public.
We have been waiting since 1970. The Minister is well aware of the situation because he is closely associating with an insurance brokerage. He will not Widgery me in this way. The insurance companies are doing what they wish and the Minister is supporting them because he has a vested interest.
I have no connection with any insurance brokerage.
He had until he became Minister.