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Dáil Éireann díospóireacht -
Tuesday, 6 Oct 1998

Vol. 494 No. 4

Written Answers. - Motor Insurance.

Michael P. Kitt

Ceist:

120 Mr. M. Kitt asked the Tánaiste and Minister for Enterprise, Trade and Employment if her Department will investigate the high cost of car insurance premiums for people with disabilities; if her attention has been drawn to the difficulty, in particular, for male drivers under 30 years of age in this regard; if her attention has further been drawn to the few prosecutions against disabled drivers; and if she will make a statement on the matter. [18459/98]

Assessment by insurance companies in respect of applicants for motor insurance is a matter for each individual insurance company based on its underwriting experience. Insurers contend that, on the basis of their underwriting experience, drivers with certain disabilities are likely to be a greater risk than average, and in particular when the disabled person is a learner or young inexperienced driver. The number of prosecutions for road traffic offences is but one factor used by insurers in assessing the insurance risk.

The subject of loadings applied to disabled drivers has been taken up by this Department on many occasions both with individual insurance companies and with the Irish Insurance Federation. Following referral of the subject of disability loadings to the former Motor Insurance Advisory Board it was agreed that, provided the driver remained claims free, a maximum loading of 20 per cent disability loading would apply in the first year of insurance, this would decrease to 15 per cent in the second year of claims free insurance and no loading would apply thereafter provided the driver remained claims free.
This arrangement is being operated by authorised motor insurers. It does not apply, however, in the cases of degenerative illnesses and is subject to the insurers' right to call for a medical examination. The Deputy may be aware that I recently reconstituted the Motor Insurance Advisory Board, and this is an area which could usefully be looked at by the new board.
The present criteria used for assessing disabled drivers as an insurance risk is a considerable improvement on that which previously applied. Prior to the introduction of the current system, loadings ranged from 10 per cent to 150 per cent, depending on the insurer in question and the nature of the disability.
The Department is not aware of any major problems concerning the current loading system. Nevertheless, the Irish Insurance Federation has agreed to look at individual cases where the foregoing arrangement has not been observed.
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