Mr. Joe Herron:

I thank the committee for the invitation to speak. Taxi insurance has increased, on average, by 60% across the board. For those on the bottom level of premium, which was approximately €1,000, insurance rose to €1,600. That is excessive but the worst case is when somebody has an accident, because there is then no limit on the increase that can be put upon them. As a result of high insurance premiums a lot of drivers who were driving on their own licence have been forced to surrender that licence and drive for other people. They were previously able to get block insurance but that is no longer the case. Last year the cost for co-drivers, as they are known, went from €1,040 to a minimum of €3,000. In many cases, drivers just cannot afford this. A lot of them went into co-driving not just because of the cost of insurance but because the country's finances and bad economy meant they could not get finance for newer vehicles. In a large number of cases, the change to working for somebody else was not bad for them but with the latest increases in insurance the situation is now unbelievable.

There are three main insurance companies for taxi drivers and another company acted through a broker in Rathfarnham. The broker has now said it is no longer quoting for taxi insurance and has told its customers they will have to go elsewhere. In many cases, the drivers who did go elsewhere could not get a quote. When they get a refusal of a quote from three different insurance companies they can go to the insurance federation, who will get one of the companies to give them a quote. Some of these quotes, however, are absolutely outlandish and exorbitant.

My third point concerns the new wheelchair-accessible licences that are being granted. Some drivers just cannot get a quote unless they have three years' taxi driving experience. How they can get this without insurance is beyond me but this is what the companies want. One gentleman had driven a van for 23 years accident free but when he decided to go into taxi work, he got his grant for a wheelchair-accessible vehicle but the lowest quote he could get for insurance was €9,500. This does not make sense. If fares were to increase to cover the higher cost of insurance, that would reduce the amount of work drivers got.

The problem, as we see it, is that there are only three insurance companies which quote. Foreign insurance companies that could set up here will not do so because it appears the insurance companies will not divulge the full facts about what their costs and claims are. The vast majority of claims are settled without having to go to court, wherein lies a huge problem. Nobody knows what the figures are. Have taxi drivers suddenly become very dangerous animals on the road, necessitating the rise in insurance premiums?

One of our members has driven for 11 years on the same licence and for the same man. He has not had one accident but his insurance went from €1,040 last year to €3,000 this year.

It is just unbelievable. Our problem is that there are only three insurance companies and there appears to be no encouragement from the State to attract other insurance companies that would be willing to quote for taxi insurance. We would like to see the market much more open. The situation is that there are only three insurance companies in this country but in the European Union there is an untold number of companies. We would like to see some law introduced that would allow other companies to come in, see the figures for themselves, and to quote. I thank the Chairman for the opportunity to speak.