Seanad Éireann díospóireacht -
Wednesday, 8 Aug 1923

Vol. 1 No. 40

INSURANCE OF PROPERTY.

Mr. BARRINGTON

The further consideration of the following motion standing in my name was adjourned until to-day:—

That having regard to the large sums of money paid by Irish citizens for the insurance of their property from loss by fire, riot, or civil commotion, the liability to pay for which is, in consideration of these premiums, assumed by Insurance Companies and underwriters, but which liability it is now endeavoured to place on the rates,

It is in the opinion of the Seanad desirable, and they would urge the Government to introduce legislation, under which Insurance Companies or underwriters who (a) repudiate the liabilities they have assumed; or (b) are unwilling to abide by the decisions of the Free State Courts, shall be precluded from carrying on business in Saorstát Eireann.

We discussed the matter very fully on the last occasion, and I beg to propose the resolution, leaving out the words that you suggested on that occasion were quite unnecessary, namely: "or (b) are unwilling to abide by the decisions of the Free State Courts.” I also wish to add to the resolution that a small Committee be appointed to consider the best means of carrying this into operation. In these changes I have the consent of the seconder, Senator Fitzgerald.

AN CATHAOIRLEACH

I think that was a very wise thing to do, because this is a matter which raises very important questions. I want to point out one in particular. Under the old law as it stood with regard to malicious injuries—I think in that respect, but I do not pronounce a decided opinion on it, that the law is still unaltered—the position was this. If a man's premises were maliciously destroyed he was entitled not only to recover the insurance money, provided his insurance covered it, but also to compensation from the ratepayers. Of course, in the event of his recovering in that way twice over, the money that he received from the ratepayers he held as a trustee for the company. In other words, it could not go into his own pocket twice over. If your resolution would have the effect of depriving the insurance companies of that recourse to the ratepayers in cases in which malicious damage has occurred, and they have to pay the amount of the policy, it might well be that their tariffs will have to be materially increased. I only throw that out to show that this is a matter that requires careful consideration. Therefore, I think you would be wise, if I might make the suggestion, to confine your resolution to the appointment of a Committee to consider and report upon the matter.

Mr. BARRINGTON

I am prepared to accept that suggestion.

AN CATHAOIRLEACH

Any resolution appointing a Committee, according to the Standing Orders, requires that the Committee be named.

Mr. BARRINGTON

I am quite prepared to do so. Under the Standing Order the Cathaoirleach may be chairman of such a committee. In a matter of this sort with your consent. A Chathaoirligh, I think it will be desirable if you consent to act. With so many legal questions involved, with which we are unfamiliar, your guidance would be valuable.

AN CATHAOIRLEACH

I will have no objection to act.

Mr. BARRINGTON

With the consent of the Seanad I will consult with Senator Fitzgerald about the committee.

AN CATHAOIRLEACH

You should bear in mind another consideration on which I am not prepared to advise you as the position has not yet been defined, and that is the effect of Dissolution on existing Committees.

Mr. JACKSON

I think if this matter is pressed, we might require legislation. It is in itself an important matter as for the last 30 or 40 years insurance companies have been receiving premiums for plate glass—for which perhaps there are more claims than for anything else— nearly all of which went across the water. Whenever a claim is made the insurance companies throw it on the local council or district. The consequence is, that these companies have been for 30 or 40 years receiving a large premium income and practically paying nothing. I urge the Seanad to take the matter up and put a stop to the present state of affairs.

AN CATHAOIRLEACH

Perhaps your wisest course would be to postpone further action until the Seanad meets again. That would get out of the difficulty that if a committee were appointed and the legal effect of the Dissolution is to put an end to the committee, then the whole purpose of the resolution would be defeated. I think the matter might well afford to wait until the new Parliament meets when the Senators would bear in mind what they have heard in reference to it. No resolution is introduced until after the new Parliament meets, by doing this you get rid of the difficulty that might arise.

Sir THOMAS ESMONDE

I think that would be the wisest course. When the Seanad re-assembles, Senator Barrington can set about having a committee appointed and get it into working order.

Mr. BARRINGTON

With the consent of Senator Fitzgerald we will act on your suggestion and defer the matter until the new Parliament meets.

Motion, by leave, withdrawn.