Mattie McGrath (Tipperary, Independent) | Oireachtas source

I, too, compliment an Teachta McGrath and Fianna Fáil on tabling this motion, which is timely. I am delighted that in the spirit of the new politics it is not, as I understand it, being opposed by the Government. This is a very serious issue as we emerge from a dark, deep recession. I know this matter concerns car insurance mainly as well as commercial insurance, but this fledgling, recovering economy could be hijacked. That is what it is - a hijacking.

I have to declare an interest. I have a small business and my insurance increased this year by 40%. I know of countless cases of people, both young and old, trying to get insurance for cars, homes and commercial premises and businesses who are aghast at the situation. Road hauliers have lobbied the Government a lot over the past number of years, as have I, and concessions were made in terms of the rebate on fuel. In fairness to the Government, last year it gave a huge rebate in terms of the tax on heavy goods vehicles. It seems as if the insurance company saw this niche and decided to nakedly claim every ounce of this badly needed break back. We are an exporting nation and we need our haulage industry to carry our exports abroad. Efforts were made following a lot of lobbying and there was huge satisfaction and appreciation for what happened.

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Lo and behold, as would only happen in this little country, the insurance companies cavalierly decided to balance it out because those involved had to keep paying anyway. That is the attitude. What are the regulator and the Competition Authority doing about the problem of insurance cover for young motorists and homeowners? As stated by Deputy Grealish, many people are now forced to drive without insurance, which I condemn out of hand. It is off the wall to drive without insurance. It is a serious issue. Further increases in insurance are not plausible.

The task force set up to examine this issue, which comprises officials from the Departments of Finance and Transport, Tourism and Sport, is only tickling at it. We need firm action. While the Taoiseach and Ministers of the previous Government are to be complimented on their discussions with the insurance industry following the recent flooding, the industry took no notice of what was said. It takes no notice of anybody. The industry is doing what it likes, when it likes, and is charging what it likes. It would be more in line for it to address the issue of out-of-court settlements, which as a businessman I have been a victim of over the years. Despite strenuous efforts in putting together a meaningful defence, claims are often settled on the steps of the court without notification to the interested party, despite the fact that his or her premiums will likely be hijacked on renewal because of the claim payment. Premiums are also being increased following minor accidents. When my daughter was involved in a minor accident, the cost of her motor insurance increased immediately in anticipation of a payout which did not materialise until two years later. In fairness to the barrister involved, the case was fought well in court. There are too many of these cases. Pervious speakers referred to the 23,000 claims paid out in 2014 without accountability to anybody. The person who pays the piper - namely, the person paying the insurance - is the person who should call the tune. How can we expect the regulator and so on to know about settlements when the insured are not made aware of them?

We need a root-and-branch review of what motivates the insurance companies. I am old enough to remember the introduction of the PMPA levy and subsequent levies, which we are still paying. Levies are frequently introduced but never withdrawn. What is happening in the insurance industry is naked hijacking. If terrorists were doing this there would be an outcry about it and we would set the Criminal Assets Bureau on them. This is marauding by the industry with the full power of the law behind it, affecting businesses and ordinary people. Thus far the attempts to address this issue have been feeble, although I am not suggesting that the motion before us is feeble. We must deal with this issue, which is damaging to our economy. Deputy Grealish referred to countless cases of people who have been forced out of business. The Minister for Jobs, Enterprise and Innovation, Deputy Mitchell O'Connor, whom I wish well in her new role, is trying to stimulate business. The cost of insurance cover is outrageous.

The legal profession must also take account of what is going on in terms of the staggering settlements being agreed behind closed doors. There is no transparency in that regard. Even the insured person is unable to find out the level of payment or cost involved in respect of a claim. All he or she can do is shut up and put up and pay the premium the following year regardless of the cost. Insurance cover for my business increased by 40% this year. No business can plan for such increases. The cost of insurance must be linked in some way to the cost of inflation. A business that successfully tenders for work to be carried out over a 12-month period may not be able to meet the cost of huge increases on insurance renewal mid-year. This is affecting countless businesses across the country, be they agri-contractors, plant hirers or road hauliers. It is also affecting many other self-employed people, including hairdressers and funeral directors. All businesses must have insurance cover.

There has also been a great deal of outcry in regard to the need for a review of rates, which I accept something needs to be done about. The issue of insurance cover has gone wild, although I do not know the reason behind this. Perhaps it is linked to our having been in election mode since last October and the fact that a Government has only recently been put in place. It is unacceptable. This issue must be addressed firmly. Task forces and so on will not suffice. We need legislation. We may also need to consider pay-as-you-go insurance, the cost of which would be added to the fuel tax. I have previously advocated such a proposal. There are many elderly people who only use their cars to get to mass or to collect their pensions on a Friday. They should be able to avail of pay-as-you-go insurance. The more mileage one does the more risk. That type of system might put manners on the insurance companies.

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