asked the Minister for Industry and Commerce if he proposes to nationalise insurance companies.
Ceisteanna—Questions. Oral Answers. - Insurance Companies.
18.
In August, 1970, my predecessor established a committee to inquire into the insurance industry and to make any recommendations that might seem desirable in relation to the development and organisation of the industry and the supervision of its operations in the public interest. The committee examined motor insurance in the first instance and will now examine other aspects of the industry.
It would be inappropriate for me to consider any change in the structure or organisation of the insurance industry until I receive the recommendations of the committee of inquiry.
I take it that the Minister is not ruling out the possibility of nationalising insurance companies?
He is neither ruling it in nor ruling it out. He is expressing no opinion on it.
Is the Minister dealing with the many complaints which are coming before him of the abuses of some of the insurance companies in relation to motor insurance, particularly in regard to new applicants? Is he aware that many insurance companies are asking exorbitant premiums from new applicants for cover to drive motor vehicles?
I am aware of the difficulties that arise in relation to the motor section of the insurance industry in Ireland. I receive quite numerous requests to assist people who have difficulty in getting cover and I know the size of the premiums. However, maybe the Deputy will also be aware that this is an area in which some of the companies would rather not quote at all. It is the difficult part of insurance, and I think it was the recognition of the complexity of the insurance area that prompted my predecessor to set up the inquiry the result of which I am now awaiting.
My understanding was that the Insurance Committee had made a report and a recommendation in connection with motor insurance. Is the Minister indicating today that he does not propose to take any action arising from the recommendations that were made in that until such time as he has the full report in connection with insurance as a whole?
The report was an interim one relating to motor business only, and I am indicating that, since it is a part of a complex industry, in my view it would be difficult to get a satisfactory solution to the problem for one part only. Therefore I am proposing to await the final report on the industry as a whole instead of seeking partial solutions in any particular section.
Does that mean that the Minister is indicating that nothing will be done to resolve the motor insurance problem for the next three years?
It does not, as the Deputy well knows.
He will get no report from that committee for another two years.
Does the Minister realise that not alone is there a premium asked which cannot be paid but that new applicants cannot get insurance at all? The insurance companies just do not want them.
Could I ask the Minister when he expects to get a final report from the committee?
I have seen the committee and I have indicated that, in my view, this is a matter of urgency. I certainly do not accept the suggestion of Deputy Lalor that it will take three years.
I am sure the Minister will agree that in the motor industry we have the greatest problem in regard to insurance at the present time. Not alone is there a serious problem in relation to new premiums but also in relation to renewals of premiums, even in the business sector. I would ask the Minister to take urgent steps in this regard. We have one company closing in respect of any further motor business. This problem could affect the business sector very seriously and very quickly. I would ask the Minister to take urgent steps to deal with the matter.
I do accept the urgency of the situation which has been allowed to grow up, but I might point out that the substance of the Deputy's question is in contradiction to the substance of Deputy Briscoe's question. Deputy Briscoe is seeing it from one side and Deputy Fitzgerald from another.
Could the Minister say how many companies have ceased to take motor insurance in the past 12 months?
That is a separate question.