asked the Minister for Industry and Commerce the number of complaints received by his Department for the year ended December, 1975, from persons unable to obtain motor insurance at reasonable terms; and if he will make a statement on the matter.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
19.
Mr. Kitt
Strictly speaking, complaints of inability to obtain motor insurance cover at all or of inability to obtain it due to a prohibitive premium quotation are handled by the Department of Local Government. Arising from his responsibility for road traffic legislation, under which motor insurance is compulsory, the Minister for Local Government has an arrangement with the motor insurance companies whereby a committee of insurers investigate individual complaints of inability to obtain motor insurance. I understand that the number of complaints received in the Department of Local Government in 1975 was 189 compared with 282 in the previous year while the number was of the order of 600 in the year 1973.
There has been a big improvement in the availability of motor insurance cover at reasonable prices since the two increases in basic rates authorised between August, 1974, and the beginning of this year. The position is not yet satisfactory, and as I stated in a public announcement issued on my behalf in December last I intend making a new approach to the companies in the matter shortly.
Mr. Kitt
What action does the Parliamentary Secretary propose to take to improve the situation?
I am aware that the situation is not entirely satisfactory although it has significantly improved. There are certain practices which hinder the existence of full competition in motor insurance. These practices include the insistence of some companies on other non-life insurance from the motor client; the refusal of companies to take business from each other and the refusal of some companies to take certain categories of risk. There is probably a need to have a look at the general operation of the undesirable risks agreement to see if it can be improved. This is the general area in which I am hoping to take an initiative in the near future.