Mr. Kevin Thompson:

I thank the committee for this opportunity to contribute on the discussion on petrol stretching. I will make a brief presentation, the first part of which outlines Insurance Ireland's background so as to set out the context of who we are and what we do. The second part comprises a brief statement on insurance and the issue of petrol stretching.

Insurance Ireland is the leading voice of insurance in Ireland, representing 95% of domestic insurance companies and 85% of international life assurance companies. Insurance Ireland members pay out on behalf of our customers €5.4 billion claims each year to Irish consumers and contribute more than €1.6 billion in taxes to the Exchequer annually. We also employ more than 27,000 people. Motor claims exceeded €1 billion in 2013 with approximately 235,000 motor claims.

There are 16 motor insurers in the market. Damage to cars arising from petrol stretching is generally covered by comprehensive motor insurance policies, but it is not covered under third party, fire or theft policies. Insurance Ireland members have settled approximately 600 motor claims resulting from petrol stretching, with an additional 250 claims being validated in the pipeline. Our members have seen a decrease in notifications of damages claims due to petrol stretching in the past two months. Policyholders who have suffered damage should check the full extent of their policies and contact their insurers directly or, where appropriate, via their intermediaries.

This is a concise statement of how we view the position of insurance in terms of petrol stretching. I am more than happy to take questions from the committee on the issue. I am joined by Mr. Horan, our general insurance claims manager.