asked the Minister for Industry, Trade, Commerce and Tourism if he is aware of the difficulty in getting reasonable insurance cover for private dwellings in certain parts of the country; and if he will take immediate steps to rationalise the whole question of general insurance with a view to providing reasonable cover for those seeking it.
Ceisteanna—Questions. Oral Answers. - Insurance Cover.
3.
I am not aware of a general difficulty in getting cover for private dwellings, although there may be problems in particular cases. If the Deputy has particular cases in mind he could let my Department have the details. He must bear in mind that while such cases can be investigated I cannot compel an insurer to take on a risk.
I am not certain what the Deputy means when he refers to me taking steps to rationalise the question of general insurance. The difficulty in private dwelling insurance stems basically from the crime rate. As for problems in other areas of general insurance and prospective action by me, I would refer the Deputy to the replies to questions which are on the Order Paper relating to these areas.
Is the Minister aware that the premium increase in house contents cover has become so exorbitant that many people cannot adequately insure their premises? Will he tell the House if he agrees with the practice of premium costing which is being carried on by the insurance companies?
I am aware of the substantial increase in the cost of insuring house contents. This is primarily due to the increase in the crime rate, particularly in Dublin, and the number of burglaries. The method of assessing price increases is well established in my Department. Last Thursday I informed the Deputy that I had carried out a review of the pricing mechanism. I am satisfied that the method of calculating the price increase in relation to household contents is a sound one in the long term.
Would the Minister reply to the second part of my question. Does he support the practice of premium costing?
Would the Deputy explain what he means by premium costing?
"Premium costing" is the terminology used in the trade where you can charge higher rates in certain areas in certain circumstances. Does the Minister accept that as proper practice?
That is not premium costing. Some insurance companies apply specific rates in certain geographical areas. I have an obligation to allow companies price increases where the underwriting experience of the company reflects a need for such consideration. I am satisfied that the rates applying to house contents in Dublin reflect the risk factor involved.
Is the Minister aware that insurance companies are refusing to quote premiums for houses which are unoccupied for long periods? Will he make arrangements to have that cover provided for any householder who fails to get quoted an insurance premium for household contents, irrespective of the area?
I made it quite clear that I would be happy to investigate any specific cases the Deputy brings to my attention but, as I said in my reply, I cannot compel an insurer to take on a risk. I am aware that insurance companies are taking a stricter line with regard to dwellings which are unoccupied for long periods. However, I am prepared to investigate any particular case the Deputy brings to my attention.
Is the Minister aware that insurance companies are also refusing insurance cover to young people who set up business under the enterprise allowance scheme? Will he examine this position and see what he can do to help these people? There is not much point in the Government giving these people money if the insurance companies will not cover them for workers' and public liability. One business set up last year is about to close for this reason.
This question refers to dwellinghouses.
This arises out of the part of the Minister's reply which covered general insurance.
The question related specifically to private dwellings. The other aspect of the question dealt with general insurance and I replied to that. Deputy Reynolds asked a separate question, but if he has specific queries in any field of insurance I will be happy to deal with them. I cannot compel insurance companies to provide cover. However, I am particularly interested in the enterprise allowance scheme and if the Deputy has any problems I will be happy to investigate them.
I will be glad to give the details to the Minister.
4.
asked the Minister for Industry, Trade, Commerce and Tourism if he is aware that insurance companies are refusing to give insurance cover on flats in Cork city; and the proposals he has to deal with this matter.
The Deputy raised this matter with me some time ago and I took the matter up on a general basis with the insurers representative bodies. They informed me that, while the insurance of contents of flats presents extra risks, there was no specific policy of refusing cover generally.
I invited the Deputy to let me have details of any cases where cover was refused. If he can supply these details, I can have the cases followed up with the insurers, but he must bear in mind that I cannot compel an insurer to take on a particular risk.
Does the Minister have in his brief the number of burglaries?
On which question is the Deputy raising this supplementary?
The Minister answered Question No. 4 and I was about to call Question No. 5.
Does the Minister have in his brief the number of burglaries committed?
With the permission of the Ceann Comhairle, I will be pleased to help the Deputy.
If the Minister wishes to answer, the Chair has no objection.
I am always anxious to help Deputies. The number of burglaries increased from 25, 390 in 1981 to 32, 141 in 1982, an increase of 27 per cent, and it increased in 1983 to 35,826, a further increase of 11 per cent.
Is that just for the Dublin area?
No, that is the national figure, I think; but, if not, I will contact the Deputy. In relation to fire and other damage to property, the underwriting results since 1979 have been particularly unfortunate for the companies.
5.
asked the Minister for Industry, Trade, Commerce and Tourism when legislation to deal with insurance intermediaries will be introduced.
My Department are examining submissions received recently from interested parties arising out of the options I outlined in May 1984. A number of further submissions are expected.
When these have been examined I will bring forward proposals. I hope to deal with this subject as quickly as practicable in the context of the parliamentary timetable; but, as the Deputy will appreciate, I am not in a position to specify a particular date by which legislation will be introduced.
Do I take it from the Minister's reply that he is giving the House an undertaking that he is committed to introduce legislation for the registration of intermediaries?
That is correct. I am anxious that the legislation will be comprehensive and effective, and I am sure the Deputy will appreciate that. I would need to have full consultation with the industrial interests to ensure that whatever legislation I introduce is effective.
Does the Minister of State consider it appropriate that in the interim period all brokers should have professional indemnity insurance?
That is a matter that cannot be dealt with now on an ad hoc basis. It is something I should like to see realised. I am considering the legislation in the broadest sense, and as soon as I have examined all the submissions I will bring in the necessary legislation.
Will the Minister not agree that there is some disquiet among the general public as to some very irresponsible advertising by certain brokers who may not be associated with some of the recognised groupings? Perhaps while we are awaiting the legislative process the Minister might take up this matter?
I would be happy to hear about whatever specific cases the Deputy wishes to bring to my attention. Recently my Department put a notice in the newspapers regarding two companies who were offering insurance and who were not licensed here. We are very active in this area to ensure that our regulatory controls are effective.
6.
asked the Minister for Industry, Trade, Commerce and Tourism if he is aware that all insurance companies have refused to make insurance available to members of the National Association of Regional Game Councils; and if he will make a statement on the matter.
I am aware that the National Association of Regional Game Councils has experienced difficulty in obtaining insurance cover for its members. I would point out to the Deputy, however, that a quote made to the association by an authorised insurer was declined by the association. The matter is now in the hands of the association.
Is the Minister aware that members of the National Association of Regional Game Councils are afraid to take part in their sport due to the highhanded attitude of the insurance companies? Has he had any contact with the insurance companies involved, because this matter is causing grave concern?
I cannot compel an insurance company to offer cover for any particular insurance. I am aware that the members of the National Association of Regional Game Councils were offered an insurance policy at a certain premium which I admit was higher than what was offered previously. My officials have been in touch with the insurance companies in connection with this matter. I would advise members of the council to consider their position carefully, not only in regard to possible injuries to their own members but also to members of the public. While I do not wish to say too much about what the council has in mind for its members, I would advise members that they take proper steps to make sure they are fully insured while out shooting.
Is the Minister aware that Lloyd's Underwriters of Ireland have ceased to quote——
It is the PMPA.
Is the Minister aware that the effect of this is that there are 25,000 sporting guns without cover at the moment? Surely that is a most undesirable situation now that we are coming into the shooting season. The fact that there are 25,000 uninsured guns would show a considerable lack of responsibility on the part of the Minister if he does not make immediate arrangements to have the matter corrected.
It is not up to me to have the matter corrected. It is up to the members of the National Association of Regional Game Councils to make sure that they are adequately insured. I hope the Deputies listened very carefully to what I said——
What will the Minister recommend them to do?
I have said quite clearly that they should consider their personal position very carefully and make sure that they are adequately insured.
They cannot get insurance.
There was an insurance scheme in operation but it was not renewed because it was uneconomic for the company. I know that the NARGC are considering some other move. I can only advise them to be very careful and in the meantime to inform their members that there is an authorised insurer who is willing to give insurance in this area. My advice to the members is to make sure they are adequately covered.
Has the Minister available in his Department a summary of the accident rate in respect of the 25,000 people who participate each year in the shooting season?
I have not that kind of detail. I am sure that the insurance company who previously covered the members would have details of claims in their own files. I want to be quite clear about this matter and I do not want anyone to be under any misapprehension as to my position. My advice to members of the NARGC is to make sure they have comprehensive insurance cover when they are out shooting.
There is an insurance company that will give cover?
There is an insurance company who have quoted a premium to the members at a rate substantially higher than before. However, when one considers the risks not only to the members of the council but also to the general public one would be quite wise to consider this position.
Is the Minister aware that the English counterpart of the National Association of Regional Game Councils, the British Association for Shooting and Conservation, are prepared to make insurance available but there are difficulties in the Minister's Department?
There are no difficulties in my Department. I am saying quite clearly to the Deputy that an authorised insurer in this country is prepared to offer cover.
At exorbitant rates.
It is the death knell of the National Association of Regional Game Councils.
I do not wish to treat this subject lightly. I wish to advise Deputies that insurance cover is available to members of the NARGC and that they should be clearly aware of their responsibilities in this area.
What was the extent of the liabilities that had to be met from claims?
I am calling Question No. 7.