Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I welcome both presentations. We often get very long and windy presentations. That is not to cast aspersions on anyone who has been before us today. Both speakers have been succinct and helpful. Mr. Thompson has set out what the insurance industry has done in regard to this matter. He has indicated that approximately 600 claims have been paid. That is very good news if it is the case. It is not borne out by the anecdotal information I am getting. A number of people have indicated to me that they are having real difficulties with their insurance providers. I do not know whether that is another matter, nor do I know if there are issues around the validity of the case, etc. It is very difficult to talk in isolation. I am merely putting it on the record that the anecdotal information available to me suggests that quite a few people are having ongoing difficulties with their insurance companies. I accept that there are different exclusions on policies and all of that. I would like Insurance Ireland to follow up this meeting of the committee by seeking information from its members so that we can ascertain how many cases are currently pending where there is some dispute, or where the insurance companies have refused the claim. That would give us a better understanding of the overall extent of the problem that exists.

There is a concern that when an issue like this arises for an insurance company, we quickly start to see exclusions on policies that make it impossible to insure against it. I do not think that would be the best way to go in this case. It is a difficult situation for consumers, particularly those who purchase or have purchased relatively new cars. As Mr. Thompson knows, the impact of a change of engine on the value of a new car is between €5,000 and €10,000, depending on the vehicle concerned. It is completely outside the control of the person concerned. That is the insurance side. Perhaps Mr. Thompson can come back to us with details of the full extent of the problem and let us know if there are any developments coming down the track in regard to the exclusion of these matters from insurance policies.

Mr. Jewell also made a very straightforward presentation. I like his recommendations. I will propose to the committee that rather than merely giving people an opportunity to come and say what they think, it should make some recommendations on foot of the work it has done on this issue that might ultimately find their way into legislation.

A compensation fund exists in other areas. It is administered by the industry but with the backing of legislation. Mr. Thompson will be familiar with it regarding the insurance company and how that works, or perhaps how it does not work from a consumer point of view. I believe the industry will have to do much more, and that will be part of any recommendations I will put forward. Mr. Jewell touched on that when he spoke about monitoring and putting a much greater onus on the person who is selling the product to stand over it. It becomes very difficult from a traceability point of view to prove that it was at the last station one got the fuel that caused the damage. Notwithstanding that, there is a tolerable level of contaminant allowed generally in fuel because water leaks into underground tanks and so on but the State will have to become much more prescriptive about the quality of the fuel sold and the industry, in terms of the distribution, will have to stand over the product to a much greater extent.

This should not be an impossibility, particularly regarding the consolidation that has taken place in forecourt ownership across the State. There are now two or three big operators while the small independents are very much a thing of the past. There are some but the bigger conglomerates are pricing them out of the market and they are operating only in small areas. With that consolidation there is space for a much greater legislative approach and ensuring that the industry stands over the validity of its product and therefore eliminates, to the greatest extent possible, the risk of contamination occurring. When it does occur I would have thought that will help the insurance industry to ensure it does not have to go down the road of exclusions on policies. I thank the witnesses.