asked the Minister for Industry and Commerce if he is aware that an insurance company (name supplied) have intimated their intention to increase motor premiums by 100 per cent from 1st May next; the steps he intends to take to protect the motorists concerned; and if he will make a statement on the situation.
Ceisteanna—Questions. Oral Answers. - Motor Insurance Premiums.
68.
My Department have learned of a rumour to the effect that the company mentioned intend to increase motor premiums by about 100 per cent and have sought clarification of the position from the company.
I would deplore any attempt to increase motor premiums at the present time when I have received the Report of the Motor Premiums Advisory Committee and have sought the views of the National Prices Commission.
Can anything be done about motor insurance? People find it very difficult to get insurance and if they can it is usually at an excessive rate.
The Deputy is now raising a general matter.
I urged the rapid production of the report from the Motor Premiums Advisory Committee. It was delivered to me in the very recent past and is being scrutinised in my Department, and we are seeking the views of the National Prices Commission. I say with regret that the reason cover is difficult to get is that we have held premiums at a level where many companies are not interested in the motor market. We may have to raise the premiums. I have no idea yet by how much, and that will go some way towards solving the difficulty. We are well advanced in that regrettable action.
The Minister said that he would deplore an increase of the nature contained in the question. Would he do more by taking legal action, if such an increase takes place?
When the Deputy says "take legal action" I am not at all certain that I have the power to do so. Companies are in the motor insurance market voluntarily and any or all of them have the right to withdraw. That size of premium is exorbitant. On the other hand, I am aware that this is not an attractive market for any motor insurance company at this time. I hope, without recourse to such measures, that if it is seen that a solution is on the way the companies will not take precipitate action.
If we compel the individual to insure, surely we should be able to compel the insurance companies to give insurance cover at reasonable rates. If the Minister has not got such powers, will he take steps to acquire them?
The alternative would be to have our own insurance company.