Dáil Éireann Debate, Thursday - 12 July 2018
621. Deputy Imelda Munster asked the Minister for Transport, Tourism and Sport if his attention has been drawn to situation by which owners of vehicles over ten years old which have valid NCTs have significant difficulties in insuring these vehicles at a reasonable price; and if he will make a statement on the matter. [31675/18]
Amharc ar fhreagraInsurance companies are private companies. Neither my Department nor the Central Bank of Ireland has the power to direct insurance companies on the pricing of insurance products. The EU framework for insurance expressly prohibits Member States from adopting rules which require prior approval of the pricing or terms and conditions of insurance products. The provision of insurance cover and the price at which it is offered is a commercial matter for insurance 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.
The National Car Test which was introduced to comply with an EU Roadworthiness Testing Directive, is aimed at helping to prevent avoidable accidents and improving road safety, and a car which passes this test may be driven on our roads.
The Cost of Insurance Working Group, chaired by Minister of State Michael D'Arcy at the Department of Finance and the Department of Public Expenditure, is examining the cost of motor insurance including an examination as to why there is no direct link between the NCT and the availability of insurance. The Report of that Group and subsequent updates can be found here - http://www.finance.gov.ie/what-we-do/insurance/the-cost-of-insurance-working-group/.
The Cost of Insurance Working Group Report commented that an ‘older vehicle may have a greater risk of injury due to its lack of safety features compared to a modern vehicle’ (See Point 2.4 Underwriting Risks and Coverages, Section vii. Vehicle details on page 29 of the Report). Research by the Road Safety Authority indicates that in the event of a collision, the level of personal injury to an individual in an older car can be significantly higher than if that person was driving a new car. Safety features on newer cars can include greater use of airbags, electronic stability, improved braking systems, roll-over protection, etc., all of which are designed to reduce the impact of a collision on the occupants. A higher overall level of personal injury payout may be one factor that leads some insurance companies to consider older cars a higher risk in terms of potential payouts when underwriting a policy.
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.
