Brian Stanley
Ceist:260. Deputy Brian Stanley asked the Minister for Finance the options available for a person in circumstances (details supplied). [21188/21]
Amharc ar fhreagraWednesday, 28 April 2021
Ceisteanna (260)
Freagraí scríofa
I note that the details supplied relate to difficulties in acquiring insurance for a hackney. While I have regard for the circumstances in question, as the Deputy will appreciate, I cannot comment on individual cases. Furthermore, neither I, nor the Central Bank of Ireland, can compel any insurer operating in the Irish market to provide cover to specific individuals or groups. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.
On a general level, my understanding is that firms will use a combination of rating factors in making their individual decisions on whether to offer motor cover and what terms to apply. For example, factors may include inter alia the driver’s age; relevant driving experience; the age and type of vehicle; how and where the vehicle is used; the claims record; the number of drivers; and the storage location. Insurers also price in accordance with their specific claims experience and do not use the same combination of rating factors. In the case of hackney or taxi drivers, I understand that insurers take into account the nature of the business, which involves extensive driving for hire or reward, and that in their view, this has a much higher risk of injury claims from passengers and other road-users as a result.
However, as the Deputy may be aware, under the terms of the Declined Cases Agreement (DCA), which is adhered to by all motor insurers in Ireland, the insurance market will not refuse to provide cover to an individual seeking motor insurance if they have approached at least three insurers and have not been able to obtain cover from them. I would note that the number of taxi and hackney drivers utilising the DCA fell from 375 in 2016 to 205 in 2019, and to just 24 in 2020. While the numbers for 2020 are likely to have decreased in part due to the COVID-19 pandemic, the overall downward trend suggests increased stability in the market and greater availability of insurance for drivers.
Moreover, seeking to secure a more sustainable and competitive market through deepening and widening the supply of insurance in Ireland remains a key policy priority for this Government, as reflected in the Action Plan for Insurance Reform. In this regard, work is ongoing to deliver further key reforms over the coming months, which I believe will go some way to improving both the cost and availability of insurance for consumers, businesses and community groups.
Finally, it may interest the individual concerned to know that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance cover, including motor insurance. This can be accessed at: feedback@insuranceireland.eu.