Tony McLoughlin (Sligo-Leitrim, Fine Gael) | Oireachtas source

First, I congratulate the new Minister of State, Deputy Eoghan Murphy, and wish him well in his new position. At the outset, I wish to record my anger, disgust and deep regret about some of the motor insurance quotations that are being issued nationally by most Irish insurance companies this year. I also express my full support for this motion that has been proposed by the Fianna Fáil Party and that calls for a task force to be established to investigate and take real action on this matter. If anything is to come from Government support of this motion, it must be that it listened and took real action on the issues raised within the motion. Some motor quotations I have seen in recent weeks are simply appalling. Most quotes I have seen were increased by more than 60% for no reason whatsoever. The drastic rise in insurance premiums is affecting all drivers on the road, as young and old drivers, returning immigrants and male and female drivers all are witnessing unfair and crippling increases. No one is immune.

In the case of young drivers, I met a young man from County Leitrim this week who had contacted me about his insurance. He had a no-claims bonus for two years and no penalty points but this week was quoted a price of €2,700 for motor insurance, which was an increase of more than €1,200 from 2015. Can anyone justify this rise? How can this young person be expected to keep his part-time job, travel to football or make his way to college independently at such prices? It is an absolute scandal. As for older drivers, I also met another person from County Sligo who has been driving on a full licence since August 1972 with no accidents, claims or convictions. In 2015, his full comprehensive policy with every conceivable extra, including no-claims protection and windscreen and breakdown cover, as well as with no penalty points, cost €365. This year, however, his quote for renewal was €860. This is utter madness. Drivers of older cars also are being discriminated against by Irish insurance companies. I am advised that neither Aviva Insurance nor Allianz Insurance will insure cars that are more than 15 years old. The car in question was registered in 2000 or 2001 and if this is the case, what is the point of having a national car test at all? A car that has passed an NCT should not be discriminated against by insurance companies and this should be made law. I also have learned about issues affecting emigrants returning home, who are being told they have no right to their no claims bonuses from other countries. Despite living in a technical age, one is advised that Irish insurance companies cannot receive such information from another company but I ask, why not? I believe the current situation is spiralling out of control at a rapid pace.

As Members of a national Parliament, Deputies must take urgent action to address this issue in the next few months as they would be failing their constituents otherwise, many of whom risk losing employment due to these increases. While it is important to debate the reasons insurance companies believe they can charge such extortionate prices, my own understanding is the number of claims has increased and the value of compensation claims also is very high. One also is told of the damaging effects false claims and the collapse of both Quinn Insurance and Setanta have had on the industry. However, I do not believe Irish insurance companies can stand over the current level of increases due to these problems. I believe what is at play here is a realignment of insurance prices by key players to levels that obtained before the introduction of low-cost providers in the early 2000s. It appears there is now an opportunity to reset the industry and this is why such increases in the price of premiums are taking place. Members must take on insurance companies that are charging these prices and must set up a task force that will make strong recommendations. Moreover, strong Government action this issue is required.

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