Pearse Doherty (Donegal, Sinn Fein) | Oireachtas source

We will examine the report in detail and deal with the registration legislation at pre-legislative scrutiny stage. It is important that we tackle all of these issues. Some of them may be minor, but they should be tackled because it will help to reduce premiums a little. The increases stem from the investment end of the companies' portfolios - that has been the main driver - and imprudent practices in recent years. Having said that, I am concerned that the Government's approach will be to reduce the existing safeguards for motorists and those with a legitimate claim, for example, through providing care, not cash.

There is an idea that the prevalence of whiplash claims in Ireland is way beyond what it is anywhere else. I made the point in private session that - no harm to them - certain comments made by individuals in the debate were over the top. They received headlines for their comments on the weakest necks in Europe and such nonsense. Yesterday I made the point in private session that in a fire the injuries suffered would be burns, while in a car accident typically they would be damage to soft tissue and whiplash. The idea that this is the dominant claim in the sector should not, therefore, come as a surprise.

In tackling these issues to try to push down premiums I am concerned to ensure we will not reduce the safeguards for motorists and benefits. It should be borne in mind that many people do not claim from motor or home insurance companies when they have legitimate reasons to do so. I have been in that situation. Somebody hit my car while it was parked outside Leinster house. On another occasion I damaged my car and it cost money to fix it. The reason people do not claim is their premiums will increase and they will lose their no claims bonus. As a result, they put their hand in their pocket and pay themselves. If paint falls on the carpet, homeowners do not claim because they know their insurance premium will increase. Two years ago my oil tank leaked causing an oil spill in my garden. Obviously, I had to have the soil removed. When I telephoned the insurance company, I was told I should not claim because I would lose my no claims bonus and that there was an excess.

I said "Yes, but what about the cost?", which was ridiculous because the amount of damage was small but the cost was approximately €27,000, a quarter of what it cost me to build my house ten years ago. The point I am making is that many people who have legitimate claims do not claim from the insurance industry, which is profiting as a result of the fear it instils and the model it has in terms of people who take out insurance for damages that occur to themselves, physically, to their vehicles or to their homes. People do not claim, even though they are insured, because of the structure of the industry's business model. In a way, the insurance industry is committing the fraud. My point is that in dealing with this issue and trying to drive down premiums, it is important that we do not reduce the type of support and protections that are there for legitimate claimants.