asked the Minister for Industry and Commerce if he will arrange for an insurance company to provide public liability insurance cover for jaunting car owners and pony-men in the Killarney area, County Kerry; if his attention has been drawn to the fact that certain jaunting car owners cannot get insurance cover during the 1988 tourist season; if he will invite insurance companies from other EC countries to quote terms; and if he will make a statement on the matter.
Written Answers. - Insurance for Killarney Jaunting Cars.
93.
As the insurance supervisory authority my primary responsibility is to ensure that insurance companies meet their statutory reserves and solvency requirements and, as such, I must respect the right of insurers to accept or reject risks in the light of their underwriting experience. No obligation can be placed by me on an insurer to quote in respect of a particular risk or to quote at a particular premium.
I am aware of the difficulties being experienced by a limited number of jaunting car owners and pony-men in the Killarney area with regard to public liability insurance cover. It is unfortunately the case that such activities do give rise to a particular risk of injury to, and claims by, members of the public. The cost of these claims can only be met by insurance companies if a realistic premium is forthcoming to cover the risks involved. In 1986, the latest year for which full figures are available, insurers sustained underwriting losses of £15 million on their general liability business. Faced with such losses, insurers have had no option but to relate premiums to costs and to exercise more selectivity in the type of risk undertaken.
An arrangement exists with the Irish Insurance Federation to assist where difficulties are experienced in obtaining public liability insurance. Before a case can be referred to the federation it is necessary that at least half the market (including Lloyds) be approached without success. Evidence of these approaches together with a brief synopsis of the risk should be forwarded to the Insurance Section of my Department who will refer the matter to the federation. It must be emphasised that no guarantee can be given that cover will be forthcoming in every case referred in this manner to the industry representative body.
Under existing Irish law, if a person is ordinarily resident in the State and if an insurance risk arises in the State, the insurance contract must be taken out with an authorised insurer in the State. I would point out that there are at present 13 branches of undertakings with their head offices in other EC member states carrying on liability insurance business in Ireland.