Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

The section provides the Central Bank with powers to specify classes of non-life insurance that are relevant by way of regulations, without having to name the class of non-life insurance within the primary legislation. This allows for the extension of the scope of the database to different classes of non-life insurance in future on foot of an assessment by the Central Bank of the appropriateness of such an extension after consultation with the Minister for Finance without requiring further amendments to the legislation.

The section, therefore, provides for several principles and policies, in which one of the guiding principles in any potential extension of scope relates to the cost of that class of insurance. As per the recommendations of the cost of insurance working group, it is intended, in the first instance, that the database will focus on the private motor insurance sector. Consequently, it is proposed that this area will be the subject of the first set of regulations to be developed by the bank. It is important to give this matter appropriate consideration before expanding into other classes of insurance.

A report will be published at least once a year. When the first report is published, we will have a decade of information. Some 20%, 30% or 40% of cases might be settled without a medical report. If a significant number are being settled without a medical report, it falls to those of us who set policy, namely, the Department of Finance and the committee, to examine why insurance companies are settling injury claims in such a way. They have different methodologies for calculating what they pay out and at what stage. Some settle claims very early, while some do so without a medical report. Some settle them too early, while others challenge people with a very clear and obvious case for damages through no fault of their own every step of the way. We are trying to access the data to understand the flow of information. We have information on 30% of claims which are publicly settled in court or by the Personal Injuries Assessment Bureau but none on the remaining 70% of settlements.