Vol. 529 No. 4
37 Mr. Naughten asked the Tánaiste and Minister for Enterprise, Trade and Employment when she will bring to Government proposals to address the issue of car insurance for young drivers; and if she will make a statement on the matter. [2023/01]
The high cost of motor insurance in Ireland is directly attributable to the cost and frequency of claims incurred by insurance companies in settlement of claims following road accidents. This factor is especially relevant to young drivers whose adverse claims experience contributes to their consideration by motor insurance companies as a high risk category. The National Roads Authority Road Accident Facts Report, 1999, showed that 40% of drivers killed or seriously injured on Irish roads were between the ages of 18 and 34 years.
EU law prevents me from intervening directly with the insurance companies in the matter of premium levels or in respect of the risks they are prepared to underwrite. It is abundantly clear, therefore, that the primary focus of initiatives aimed at reducing the cost of insurance for motorists, including young drivers, must be on reducing the frequency of accidents and subsequent claims. There are a number of such initiatives in place. For example, the Irish Insurance Federation, in conjunction with the Driving Instructors Register, has introduced a scheme of insurance premium discounts for the learner driver on completion of a required number of driving lessons. The National Safety Council, in co-operation with the Garda Síochána, continues to promote anti-speeding and anti-drink driving media campaigns. Greater attention to safety on the roads can further reinforce insurance cost reduction measures at Government level.
The work of the Motor Insurance Advisory Board is aimed at providing me with information and advice on trends in motor insurance costs and with policy recommendations for addressing these costs. The issue of the high cost of insurance for young drivers is especially being examined by the board on behalf of the Department.
Further measures may be expected as a result of the work of the special working group established to consider the establishment of a personal injuries tribunal. On the basis of the group's second report, it is hoped to bring proposals to Government as quickly as possible with the objective of putting arrangements in place to reduce the costs of delivering personal injury compensation by streamlining the claims process. It is also intended to publish the group's report at that stage.
The most effective way of ensuring the most competitive quotes are available to the Irish consumer is to have as many insurers as possible competing on the Irish market. It appears that the implementation of EU legislation, opening up the EU market to competition from authorised insurers in all EU member states, has had a beneficial effect on competition in the Irish market.
The Minister of State raised the issue of competition. Has increased competition led to cherry picking within the market, which has not benefited young drivers? Is he aware it costs more to do the driving lessons under the IIF discount scheme? A person is £50 worse off and perhaps the Minister of State should review that. When will the recommendations to Government be made? Does the Minister of State recall that three and a half years ago when he and his colleagues were in Opposition they made this a political issue? They have done absolutely nothing about it since they entered Government. When will there be action? Ireland has the worst road fatality statistics in Europe. Action is needed now, not talk.
Deputy Naughten has done a great deal of talking about this issue and I listened with interest to his comments. He said the cost of driving lessons has been driven up as a result of our polices. However, I read about his policy docu ment in the newspapers and he believed that driving lessons should be compulsory. That would inflate the price of lessons and, perhaps, make them more costly than some insurance charges.
We expect to have the personal injuries tribunal report and the proposals therein before Government within a month or so. With regard to us having done nothing, we established the Motor Insurance Advisory board, which comprises 17 representatives of every body associated with motoring in Ireland, including all State Departments and agencies involved. It is a powerful board with an excellent chairperson and a tremendous back up secretariat from the Department. The board has been given a task to complete within a set period and will report towards the end of the year. Its report will be worth waiting for.
We have considered everything over the past three and a half years to address the serious insurance cost issue from both a technical and a legislative perspective. We have received the utmost co-operation from other Government Departments and the relevant measures that can practically be introduced into law will be brought in as quickly as possible, I hope, this year. I hope the Deputy will be pleased when a number of new measures come on stream.
While I do not dispute the fact that the Minister of State has considered all the various options, will he enlighten us in regard to what decisions have been taken after three and a half years in Government? The problem is no decisions have been taken—
A question, please, Deputy. We are running out of time and the Minister of State will not be allowed to answer if we go beyond six minutes.
What action will the Minister of State take to reduce the cost of insurance? The cost of insurance premiums will increase by 20% this year.
Deputy Naughten has not listened to my consistent reply to this issue every time it has been raised. EU law prevents the Government and my Department from intervening directly with insurance companies in regard to the risks they cover and the premiums they charge. All we can do is try to create a policy environment and a legislative mechanism to improve the situation in Ireland. It behoves all of us to make sure there is a change in people's attitude to the seriousness of driving-related problems in Ireland, including drinking and driving and driving too fast.
There has not been any action.
Our record is there to be seen.
The Government has not done anything.
When one of our colleagues reduced the figures we know the support he got from the Deputy's party.
The Government has done absolutely nothing.
