Trevor Sargent
Ceist:102 Mr. Sargent asked the Tánaiste and Minister for Enterprise, Trade and Employment her plans to introduce controls to prevent young drivers paying car insurance premia of £75 a week. [28789/01]
Written Answers. - Insurance Costs.
Brian O'Shea
Ceist:188 Mr. O'Shea asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress made in the matter of reducing the high level of insurance costs for young drivers; and if she will make a statement on the matter. [29041/01]
I propose to take Questions Nos. 102 and 188 together.
EU law does not permit us to intervene in the pricing or underwriting of insurance. The Motor Insurance Advisory Board is due to report to me at the end of this year on a number of issues, including the relationship between the motor insurance premiums charged to particular risk groups, such as young men, and the claims experience of such groups. We will consider urgently the recommendations of the board when they have been received and analysed by us.
Research has shown that insurance premiums are high in Ireland because compensation awards are high. Compensation for loss of income and for medical expenses arising from personal injury is paid for through the private insurance system rather than through the social welfare and health systems as in other European countries. Of the total cost of personal injury claims, the costs of delivery of compensation accounts for approximately 40%.
The objective of the proposed Personal Injuries Assessment Board is to reduce these latter costs so that insurance costs may also be reduced. An implementation group is expected to report at the end of the year as to how the PIAB may be put into operation.