Dáil Éireann díospóireacht -
Tuesday, 30 Jan 1990

Vol. 394 No. 8

Written Answers. - Insurance Cover Anomaly.

Seán Barrett

Ceist:

224 Mr. S. Barrett asked the Minister for Industry and Commerce if his attention has been drawn to the fact that musicians are unable to obtain motor insurance cover in the ordinary way; and if he will take steps through the Irish Insurance Federation to remove this anomaly.

Minister for Industry and Commerce (Mr. O'Malley)

Both my Department and the Irish Insurance Federation have received only a small number of queries from persons in this profession regarding the availability of motor insurance.

In exceptionally difficult cases cover can be obtained through the declined cases agreement. This is an agreement between the authorised motor insurers and the Minister for Industry and Commerce. The Declined Cases Committee, established under the agreement, examine cases referred to them by my Department where motorists have been declined cover by five or more insurance companies, and nominates a company to quote for the risk involved. Before a case can be submitted to this committee for consideration it is necessary for my Department to have copies of written refusals from five insurance companies indicating the order in which they were approached together with details of any previous insurance held in the last three years. I am not aware of any cases, involving musicians, which had to be referred to the Declined Cases Committee in order to obtain cover.

I understand that all insurers regard certain occupations (e.g. musicians and taxi drivers) as being high risk as their vehicles tend to be on the road for longer periods, particularly late at night, and would, therefore, be exposed to much greater risks. As a result some insurers will decline such a risk while others will quote and apply an occupational loading.

The Deputy will be aware that, as the insurance supervisory authority, my primary and statutory duty is to ensure that insurance companies maintain their statutory reserves and solvency requirements. In this regard I must respect the right of insurers to accept or reject risks in the light of their underwriting experience. There is no legal obligation on any insurer to quote in respect of any risk or to quote in any manner or at any particular premium.