Vol. 428 No. 6
66 Mr. Barry asked the Minister for Enterprise and Employment if the Government are studying the feasibility of replacing motor insurance premia with a levy on petrol, as indicated in the Programme for a Partnership Government 1993 to 1997; if so, when he expects this study to be completed; if his attention has been drawn to the Irish Insurance Federation's views on the subject; and if he will make a statement on the matter.
I would like to advise the House that the Government is studying the feasibility of replacing the current system of insurance premiums for third party liability motor insurance by means of a levy on motor fuels. As the implications of such a levy are wide-ranging, involving economic, social and legal issues, I cannot at this stage give a firm indication of the completion date of this exercise.
However, I can assure the Deputy that the matter is being pursued without undue delay.
I would add that I am aware of the views expressed by the Irish Insurance Federation and I note that the insurers have stated that something has to be done to reduce motor premiums, and that they would be very happy to explore with Government representatives various ways of achieving this.
The Government's commitment to improving the cost environment for insurance is not confined to the consideration of a levy on motor fuels. The Inter Ministerial Group on Motor Insurance is also being re-activated to provide a focus for the identification and consideration of initiatives having the objective of reducing insurance costs.
Finally, I must stress that the primary ministerial responsibility of the insurance supervisory authority is to ensure that insurance companies meet their statutory solvency and reserve requirements. In order to meet these requirements and operate on a viable basis insurers must be free to make their own underwriting decisions particularly in terms of the acceptance or rejection of risks and the charging of insurance premiums.
