Noel Grealish (Galway West, Independent) | Oireachtas source

I compliment Fianna Fáil on tabling this Private Members' motion. Every Member of this House will have had a case brought to his or her attention regarding insurance costs in the past number of years. I am currently dealing with the case of a lorry driver with a clean licence who has never had an accident. His insurance bill last year was €1,320 and this year it is €3,847. He is just not in a position to pay it. This individual has children at school, but the lorry is parked up because he cannot drive it. He is in the process of trying to raise the money somewhere to pay for the insurance. We priced around with a number of insurance companies but they will not give him a quote. This is what is happening. Is it that these insurance companies are operating a cartel or something? I believe they are playing to their shareholders and maximising their profits. Unfortunately, many of these insurance companies are multinational companies, so I do not know if the Government can force them to bring down their prices.

In 2002, when I was first elected to the Dáil, there was a major issue regarding insurance claims. The then Tánaiste, Mary Harney, introduced the Personal Injuries Assessment Board, which brought down insurance costs in the following years. It is not just car insurance that has increased. Household and business insurance have also increased. This morning, I rang five business people in Galway. Their insurance costs have increased in the past two to three years by between 20% and 50%. In one company alone, there was a €70,000 increase in the insurance costs for a major factory. The owner told me he will have to let staff go if insurance costs continue to increase.

Many other Members have also mentioned young drivers. Unfortunately, many of these drivers are finding themselves driving without insurance because they cannot afford to pay for it. I plead with them not to drive without insurance. It is a very serious offence, and God forbid there was ever an accident. They might buy a car for between €2,000 and €3,000 and the first insurance premium could be €4,000 to €5,000.

Returning to the issue of the flood crisis in 2009, insurance companies refused to renew flood insurance for houses which had been flooded. We met the insurance regulator and, to be honest, it was a waste of time. He more or less told us he could not do anything and that it was the insurance companies who set the policies and the premiums. I know the OPW cannot give a commitment or assurance that following the carrying out of appropriate works a house would not flood again, but some insurance companies stated that even if the works were done they would still refuse to provide flood insurance. I know a review is being set up within the Department to try to deal with this issue but unless it has teeth and something can be done with the insurance companies, nothing will happen. Unfortunately, businesses and shops will close because the costs have gone through the roof.

I ask and plead with the Government to ensure that if it does something regarding insurance, it is given some sort of teeth and will force insurance companies into action. Some Members have spoken about setting up a national insurance company run by the Government. I do not believe that is the answer, but something has to be done to ensure premiums are reduced. I hope that following this motion something will be done. I think that there will be consensus within the House and that all parties and Members will work together to try to find a resolution to the issue.

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