I propose to take Questions Nos. 75 and 86 together.
I am aware of the concerns raised by the Deputies. However, you should note that neither the Minister for Finance, the Central Bank nor I can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept. This position is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.
Policy in relation to the NCT lies with the Minister for Transport, Tourism and Sport. A valid NCT is generally a minimum requirement in order for an insurer to provide cover. It is however not the only rating factor taken into account in the provision of motor insurance, therefore just because a car has a valid NCT does not automatically mean that an insurer will offer cover. In making their individual decisions on whether to offer cover and what terms to apply, insurers will also use a combination of other rating factors, which include the age of the vehicle, as well as the type of vehicle, the age of the driver, the relevant claims record and driving experience, the number of drivers, how the car is used, etc. My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurers will price in accordance with their own past claims experience, meaning that in relation to the age of a vehicle and the availability of cover, different insurers will use different age thresholds.
Department officials have been engaging with Insurance Ireland in relation to the availability and cost of insurance for older cars, and have been informed that certain insurance providers have recently changed their acceptance criteria and increased their vehicle age threshold levels. Notwithstanding this, I intend to write to Insurance Ireland in order to try and get a more detailed perspective on this matter.
