asked the Minister for Industry, Commerce and Energy if he is aware of and approves of the practice whereby an insurance company (name supplied) enjoying what is approaching a monopoly of the motor insurance business, compel their clients to utilise garages and service stations owned by, or associated with the company.
Ceisteanna—Questions. Oral Answers. - Motor Insurance.
22.
It is not quite correct to say that the company to which the Deputy refers compel their policyholders to utilise garages owned or associated with them, although their requirements may be said to induce them to do so in certain circumstances. Before granting or renewing cover on vehicles over five years old, the company require checks to be carried out as to their roadworthiness. These checks can be done by a garage owned or associated with the insurance company, by a member of the Institute of Automotive Engineer Assessors or in certain circumstances by an accredited main dealer. I think a periodic roadworthiness test of older vehicles is desirable, and I believe the practice of this company is much cheaper for the majority of their clients than would be the practice of most insurance companies which require no test but automatically impose an age-of-vehicle loading. While I would welcome a change to provide that the test might be carried out in any garage, I recognise that this could create serious practical difficulties for the company, and I do not consider their practice unfair or unreasonable.
The company do not insist that, in the case of a claim for damages, assessment of the damage or repair must take place in their own or associated garages.
What, in the opinion of the Parliamentary Secretary, is a monopoly situation?
That is a separate question.
The question asked states "enjoying what is approaching a monopoly of the motor insurance business". The Parliamentary Secretary has answered the question. Before she answered it she must have had some idea of what the definition of "monopoly" in the context of the question is.
I suggest that if the Deputy requires an answer to that question he should put down a separate question.