asked the Minister for Industry and Commerce if he is aware that it is the practice of insurance companies to levy a special loading charge on private cars in the Dublin area when a policy is being renewed; and if he will consider requesting the companies concerned to cease this practice.
Ceisteanna—Questions. Oral Answers. - Car Insurance.
16.
I am aware that it is the practice of virtually every motor insurance company to apply what are often described as Dublin area loadings to policy holders in that area. This type of loading has been in existence for many years and is usually applied to both new and existing business although a loading introduced by a company would not apply to an already existing policy until renewal date.
In October last I established the Motor Premiums Advisory Committee to advice me on motor insurance rates and I am expecting to have an interim recommendation from that committee by the end of next month. I expect that the committee will among other things look into the question of various loadings applied by insurance companies. When I have considered the committee's report I will decide what action should be taken.
In the interim period many thousands of policies become due for renewal and Dublin motorists are being victimised by this practice of the insurance companies trying to circumvent price control in regard to increases in premiums. Does the Minister intend taking any interim measures to prevent further increases for the motorists in Dublin?
Perhaps I could indicate to the Deputy the timetable again. This is a long-standing practice. I will have the interim report by the end of next month, that is, within a matter of four weeks. I recognise there is a genuine difficulty but it is also a complex area. The complexities have grown up over a long time. When I get that report I certainly will not delay because I appreciate the difficulties that exist.
17.
asked the Minister for Industry and Commerce if he intends making car insurance a Government responsibility.
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 submitted an interim report in November, 1972. The committee are now examining other aspects of the industry.
I do not intend to consider changes in the structure or organisation of any sector of the insurance industry until I have received the final report of the committee of inquiry.
I understand it has been advocated from the Minister's party that there might be a nationalisation of insurance, particularly motor insurance?
This is a separate matter.
Is this still under consideration?
I do not want to prejudge either the contents of the report, when it comes, or the ultimate decision that will be taken. Certainly the question of nationalisation is under consideration along with other things. It is not excluded.