Vol. 517 No. 4
144 Mr. U. Burke asked the Tánaiste and Minister for Enterprise, Trade and Employment her views on the current policy of some insurance companies which refuse to quote for car insurance particularly for young drivers who are seeking first-time cover; the plans, if any, she has to alleviate the problem; if she will request these companies to respond reasonably to requests for cover; and if she will make a statement on the matter. [10090/00]
In relation to the availability of motor insurance cover there is no provision under EU or insurance legislation for me to interfere in underwriting risks by insurance companies nor am I empowered to regulate the level of premiums. The provision of insurance cover is generally based on underwriting experience, including trends in the cost and frequency of claims, and is a matter of judgment for the individual insurance company.
I am aware that motor insurance is often available only at a high price to young people, especially young male drivers. However, this is directly related to adverse claims experience of young, especially male, drivers as a risk category. The 1996 Deloitte & Touche report on an economic evaluation of insurance costs found that the average cost of an insurance claim for 17-24 year old drivers is twice that for the 36 to 40 age group and that motorists in the 17-24 age group are responsible for over three and a half times the total average claims costs incurred for motorists in the 36 to 40 age group.
My re-establishment of the motor insurance advisory board was a major initiative aimed at providing us with information and advice on trends in motor insurance costs and with policy recommendations for addressing those costs. The board whose expanded membership includes a member representing young drivers' interests, has undertaken an ambitious programme of work and research, particularly in relation to the basis of charges to young drivers.
The primary focus of initiatives aimed at reducing the cost of motor insurance for young drivers must be on reducing the frequency of accidents and the associated costs of claims. A number of initiatives are in place and are being taken to improve driving standards and safety awareness among all drivers, including young drivers. The Irish Insurance Federation, in conjunction with the driving instructors register, has introduced a scheme of insurance premium discounts for the young driver on completion of a required number of driving lessons. The National Safety Council, in co-operation with the gardaí, continue to promote anti-speeding and anti-drink driving media campaigns, including road safety educational programmes for secondary school students. My colleague, the Minister for the Environment and Local Government, Deputy Dempsey, has been asked to look at a graduated licensing system for learner drivers, based on the Ontario model which could have a significant impact if introduced here in Ireland.
