Dáil Éireann Debate, Wednesday - 21 March 2018
290. Deputy Robert Troy asked the Minister for Transport, Tourism and Sport if the possibility of capping motor insurance premiums at 150% of the vehicle value being insured for fully licenced drivers under 25 years of age will be examined. [13059/18]
Amharc ar fhreagraThe Cost of Insurance Working Group chaired by the then Minister of State at the Department of Finance, Eoghan Murphy, T.D., published a Report on the cost of motor insurance in January 2017 http://www.finance.gov.ie/what-we-do/insurance/the-cost-of-insurance-working-group/.
This report stated that age is a risk factor for collisions and that "the age of the driver is indicative of the probability generally of loss or damage, with younger drivers having a higher risk ... Higher premiums are traditionally charged for younger drivers compared with middle aged ones".
The EU framework for insurance expressly prohibits Member States from adopting rules which require prior approval of the pricing of insurance products. Insurance companies are private companies and the provision of insurance cover and the price at which it is offered is a commercial matter for those companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. These are considered by insurance companies on a case by case basis.
Mandatory motor third party liability insurance required under the Road Traffic Act 1961 covers not just property damage but also personal injury caused by the driver who is at fault. So, confining or capping motor insurance premiums to a percentage of a particular vehicle’s value – in some cases for a vehicle whose value is negligible - would not be practicable even if it were possible.
Insurance Ireland operate a free Insurance Information Service for those who have queries or difficulties in relation to obtaining insurance. If a person is unable to obtain a quotation for motor insurance or feels that the premium proposed or the terms are so excessive that it amounts to a refusal to give them motor insurance, they should contact Insurance Ireland, 5 Harbourmaster Place, IFSC, Dublin 1 Postcode DO1 E7E8 quoting the Declined Cases Agreement email: declined@insuranceireland.eu Tel. 01.6761820. See http://www.insuranceireland.eu/consumer-information/general-non-life-insurance/declined-cases-agreement.
Under the Declined Cases Agreement, which all motor insurers must adhere to under the Central Bank’s ‘General Good Requirements for Insurance and Reinsurance Undertakings’, https://www.centralbank.ie/docs/default-source/Regulation/insurance-reinsurance/solvency-ii/requirements-and-guidance/general-good-requirements-2012.pdf?sfvrsn=4 the Declined Cases Committee of Insurance Ireland, which includes consumer representatives, deal with any cases of difficulty in obtaining motor insurance.
