Dáil Éireann Debate, Tuesday - 12 February 2019
146. Deputy Robert Troy asked the Minister for Finance if he will address the issue of returning emigrants being charged high car insurance due to the fact they have lost their no claims bonuses (details supplied). [6244/19]
Amharc ar fhreagra149. Deputy Peadar Tóibín asked the Minister for Finance the steps he is taking to ensure that the 28,000 returning Irish emigrants in 2019 will not be treated as first-time drivers or novice drivers in the calculations of insurance companies (details supplied). [6304/19]
Amharc ar fhreagraI propose to take Questions Nos. 146 and 149 together.
At the outset it is important to note that as Minister for Finance, I am responsible for the development of the legal framework governing financial regulation. Neither I nor the Central Bank of Ireland 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. Consequently, I am not in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of drivers or vehicles.
Notwithstanding this, the difficulties faced by returning emigrants in respect of motor insurance are being addressed as part of the Cost of Insurance Working Group’s ongoing implementation of its recommendations. The Deputy may be aware that in fulfilment of one of the Working Group’s recommendations, a protocol was agreed between Insurance Ireland and the Department of Finance under which insurance companies committed to accepting the driving experience returning emigrants gained while abroad, when the driver has had previous driving experience in Ireland.
The guiding principle of the protocol is to ensure that a returning emigrant is not treated differently to any other driver, subject to verification of their continued driving experience and the normal acceptance criteria of the company. Thus, a returning emigrant will not be disadvantaged from spending that time abroad. Furthermore, under the protocol, insurance companies will not distinguish between countries on the basis of which side of the road driving takes place therein.
Insurance Ireland submitted a report on the implementation of this recommendation to the Department in December 2017. This report confirmed that Insurance Ireland members have agreed to publish the wording of the agreed protocol on their company websites and other forms of social media, in addition to providing training for staff who can work through issues with emigrants before they leave, whilst they are out of the country and when they return to Ireland. The stated intention is “to resolve any issues well before they arise and for the consumer to be aware of the considerations when moving abroad”. The wording of the agreed protocol is also available on the Insurance Ireland website. Following a review by the Department, insurers have been asked to ensure this information is displayed more prominently on their websites to ensure that it is accessible and visible for consumers. The Department will continue to monitor this situation.
The December 2017 report from Insurance Ireland also outlined some sample cases which demonstrate how the rolling-out of the protocol has already led to disputed cases being resolved to the benefit of returning emigrants, and provided figures indicating that the number of such cases being processed under the Declined Cases Agreement had been decreasing, a pattern which has endured since. The next report on the operation of the DCA, outlining the figures for 2018, is due to be submitted to my Department in this quarter. My officials will examine the breakdown of the number of cases in the report to determine if the downward trend is continuing and I will continue to monitor the implementation of the recommendation through my Department’s regular engagement with Insurance Ireland.
The Minister for the Diaspora and International Development, Mr Ciarán Cannon TD, has undertaken some further work in this area, through the Interdepartmental Committee on the Irish Abroad. This has included highlighting each individual motor insurance operator’s overall policy in respect of returning emigrants. The insurers which responded positively in relation to providing cover for this category are listed on the Department of Foreign Affairs and Trade website. These insurers have also indicated that they do, in one way or another, take into account claims-free driving experience earned abroad.
It is important to highlight that if a returning emigrant believes that they have received a high quote due to an insurance provider not accepting driving experience gained while abroad, they should contact the free Insurance Information Service operated by Insurance Ireland, which can be accessed at feedback@insuranceireland.eu or 01-6761820.
Finally, I am hopeful that the continued implementation of all the recommendations from the Report on the Cost of Motor Insurance – in addition to those in the CIWG’s Report on the Cost of Employer and Public Liability Insurance and the two reports of the Personal Injuries Commission – can help to maintain and expand the positive trend which has seen private motor insurance premiums decrease by 22.16% over the last two-and-a-half years.
