asked the Minister for Local Government if he is aware of a growing practice of putting cars that have been declared write-offs by insurance companies back on the roads; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Written-Off Cars.
6.
I am aware that, in a case where a vehicle has been damaged and the insurance company concerned does not consider the cost of repairs to be an economic proposition for them but accepts instead that the vehicle can be treated as a write-off, that the vehicle may in fact subsequently be repaired and put back into use. I have no grounds for concluding that in any such case the repaired vehicle is unfit for use or that such a practice results in a significant road safety problem.
I would remind the Deputy that there are various provisions in the Road Traffic Acts and the regulations made under them, which enable the Garda to deal with vehicles which are, or are suspected to be, unfit. These include sections 11, 20, 53 and 54 of the 1961 Act, as amended by the 1968 Act.
Furthermore, there is nothing to prevent the insurer undertaking the insurance of the repaired vehicle from satisfying himself as to its condition. Indeed, I understand that generally insurers require evidence as to the condition of older vehicles before insuring them or renewing their cover.
An Foras Forbartha have been and, with the co-operation of the National Road Safety Association and my Department, are conducting a programme of voluntary inspection of vehicles which, apart from its advisory effects in, for instance, convincing the public of the value of vehicle fitness, provides a useful base of information on which my Department may assess various possibilities in relation to a scheme of inspection and testing of motor vehicles. This assessment is proceeding at present and will take due account of all relevant issues, including that of the type of vehicles mentioned by the Deputy.
Is the Minister aware that in order for an insurance company to declare a car as a write-off for insurance compensation purposes the car must be in a very bad condition? In view of that, is the Minister serious when he says that when some of these cars are put back on the road he does not consider there is any cause for worry from his point of view?
The Deputy misunderstands the situation.
The Minister gave a long reply but that was what he said.
The position is that in the event of repairs to the car costing more than its insurance value, the insurance company suggest a write-off. This may happen although the car may not be in very bad condition. However insurance companies usually carry out very stringent inquiries in regard to such cars before reinsuring them. Indeed, the Garda have been on the alert in their respective areas for such vehicles to ensure that they are not put back on the road in an unsatisfactory condition.
Is the Minister considering any question of compulsory examination of cars in this regard?
This matter has been under consideration for a long time. The cost of such an operation would be very high, as was recognised by my predecessors who suggested—and I have not deviated from their suggestion—that if we had available the type of money which would enable us to carry out this sort of operation there are other more beneficial ways in which that money could be spent.
Therefore the Minister is not considering it?
Not at present.
Would the Minister consider introducing a scheme similar to one in operation in England whereby a certificate of road-worthiness is issued in respect of each car? This would help the insurance companies in reaching decisions on whether to continue cover.
I do not think the insurance companies require any help. They are doing this job quite well themselves.
Has the Minister an interest in the operations of insurance companies?
No, but I am being practical about the matter.