Vol. 484 No. 3
24 Mr. Stanton asked the Tánaiste and Minister for Enterprise, Trade and Employment if she will report on the meetings, if any, she has had since taking up office with groups, particularly the Insurance Federation of Ireland, regarding the high cost of car insurance, in particular for younger drivers; and if she will make a statement on the matter. [22316/97]
I am taking this question on behalf of my colleague, the Minister of State, Deputy Treacy, who is on ministerial business in Brussels.
I hope the Minister of State, Deputy Kitt, will not dump on him like his colleague did the last time.
As Deputy Owen is the first to appreciate, Brussels is becoming more like a head office as the years go by.
The last time he took a question addressed to the Minister of State, Deputy Kitt, he dropped him in it.
I was very satisfied with the way he handled my question. I would like to have been here because I was so much involved in that issue, but I was at a meeting of Social Affairs Ministers in Brussels at the time.
The supervision of authorised insurers and the monitoring of insurance market issues, including the cost of insurance, are handled by my colleague Deputy Treacy, the Minister of State with responsibility for Science, Technology and Commerce. The Minister of State recently held an informal meeting with the Irish Insurance Federation, in the course of which the cost of insurance for the young driver, the factors giving rise to relatively high premium rates and the initiative taken by the IIF to promote safer driving standards among young drivers as the basis for reducing premiums, were discussed.
The Minister of State also met the management of Guardian PMPA Insurance last week to express his concern at recent increases in motor premiums. Consultations will continue with the industry.
The basic problem is that young Irish drivers' claims experience is extremely poor. Such drivers represent a very high risk to insurers, hence the relatively high motor premium levels charged to them. In this connection, I draw the Deputy's attention to detailed replies which the Tánaiste gave to the House on 21 October 1997 and 6 November 1997 regarding the issue of motor insurance costs, especially for young drivers. In those replies the Tánaiste outlined the findings of the Motor Insurance Advisory Board, the Deloitte and Touche report on an economic evaluation of insurance costs and statistical information contained in National Roads Authority annual reports.
I am delighted that the Minister of State has met the various bodies. That basically answers my question, but his statement is disappointing as he rehashed what has already been said a number of times by the Tánaiste. Where has the Minister of State's imagination gone? Before the election his party came up with some attractive vote catching proposals. The Minister of State, Deputy O'Dea, spoke about advanced driving courses.
Will the Deputy ask a supplementary question, please?
Will the Minister of State do anything about advanced driving courses? Has he any proposals regarding graded licensing systems? Is he considering probational driving licences as they have in Sweden? What about the low mileage factor where drivers are concerned? Has the Minister of State or his colleague done anything?
The answer is yes. I appreciate that this issue has been with us for some time and successive Ministers have endeavoured to deal with it. However, I assure the Deputy that my colleague, the Minister of State, Deputy Treacy, is determined to make progress.
I will outline some of the recent initiatives. The Department of the Environment co-operated with the Automobile Association in the launch of an AA drink driving video aimed at young drivers. An insurance incentive scheme has been established by agreement between the Irish Insurance Federation and the driving instructors' register whereby insurance discounts will be offered to young drivers who have completed an agreed number of driving lessons over a calendar year. The Ontario graduated licensing system for learner drivers is currently being examined by the Department of the Environment. The National Safety Council is also working to produce course material on road safety to fit in with the new primary school curriculum. The council recently adopted a five year road safety programme which includes the development of educational material in 1998 for transition year students in secondary schools. Some schools are also offering driving training courses on a commercial basis.
The next and last element deals with one of the Deputy's questions. In its adjustment of motor rates the Hibernian group, the second largest underwriter in the Irish motor market, incorporated a reassessment of the young drivers' insurance risks profile resulting in a new insurance scheme that will take into account a young motorist's claims free experience as a named driver on his or her parents' motor insurance policy, and a no claims bonus incentive to reward such claim free driving.
The Deputy is right in saying that there are many statistics and, thanks to new information technology advances, a database specifically dealing with the key areas is now available. For example, it is clear from the information I have, and I am sure the Deputy has also, that the basic problem is not just young drivers but young male drivers who constitute the major risk area. It goes without saying that young females are less of a risk. The key is to work on these risk areas. There is a need for insurers to refine and segment the young drivers' market in a more scientific manner.
I am delighted to hear this. Will the Minister of State go further and encourage advanced driving courses? As such courses are very expensive, has the Minister of State any plans to help younger drivers to pay for them? Has the Minister of State looked at the fact that over 700,000 people are now driving with provisional driving licences? I know this is not within his remit, but it is a big factor in the high cost of insurance. Surely the Government is failing in not hiring more driver testers to cut down on the number of people with provisional licences and thereby helping to cut high insurance costs.
I thank the Deputy for raising these important issues. I assure him that his suggestions are being acted upon by the Minister of State, Deputy Treacy. I welcome the constructive suggestions the Deputy made. As I said, schemes such as the Ontario graduated licence system are being examined. The Minister of State is endeavouring to put together many of the fine proposals that have been in the public arena for some time. In working closely with the insurance industry, to which he has made his views known, the Minister of State is determined to make advances in this area.
I am interested in the Minister's comments on the second level curriculum. That is an area on which he could profitably work, particularly in relation to speeding. It is perhaps sexist to say so, but it is a fact that young males like to drive fast. Speed is the area to work on.
Has the Minister of State any inclination to move with his British counterparts towards a no drinking and driving situation? I understand the British authorities are launching such a campaign this Christmas aimed at promoting zero drink levels for drivers.
As somebody who was involved in the education area, I welcome the Deputy's emphasis on the need for more education. I accept that specific facts and figures show that young male drivers are a major risk. We must focus on that sector in blunt terms, whether at primary or secondary level.
I share the Deputy's views on drink driving but it is a matter which I must refer to my colleague, the Minister for Justice.
Is the Minister of State confirming that, as regards young drivers under the age of 25 who are now working and able to afford a car, there is no joy for them regarding a reduction in premia until such time as he has gone through all these negotiations and debates?
In view of the high cost of motorbike accidents, will the Minister of State ask his colleague the Minister for the Environment to consider introducing proper testing for motorcycle drivers? A great number of accidents, including, sadly, fatal ones, involve young motorcyclists.
I made it clear in my reply that the Hibernian group, for example, is endeavouring to reward young drivers who drive carefully. Because of the data available through information technology we are now in a position to refine and segment the area concerning who is behaving and who is not. I have outlined some of the initiatives the Minister of State is taking.
I will gladly examine the situation regarding motorbikes. I am aware that courses are available for motorcyclists and I encourage young drivers to take the necessary precautions by doing such courses and taking every possible advice.
I do not think there is any testing in that.
I will have that examined.
