Timmy Dooley (Clare, Fianna Fail) | Oireachtas source

I welcome the opportunity to contribute to this important debate and I compliment Deputy Michael McGrath on his foresight in addressing this issue. The response, which has achieved consensus around the House, is based on stories we are all hearing from our constituents. Many people have come to my constituency office to outline some really harrowing stories.

There is a belief that motor insurance has probably risen by 35% across the board. However, I have heard cases involving increases of between 60% and 100% where there has been no material change in the existing contracts, including the vehicle or any past history.

The haulage sector has indicated that it is finding things difficult given the spiralling costs. One particular haulier identified an increase of 160% in insurance costs. Unlike others, he was in a position to challenge and fight the case, otherwise it would have put him out of business. As a result of that, he succeeded in getting a much lower cost.

It is clear that the insurance market is not functioning appropriately. There is a lack of competition, as a result of which insurance companies are sitting on their hands. They are getting the business in, passing costs on, and putting a margin in that people cannot afford.

When Quinn Insurance was in the market it changed the way business was done. It had solvency issues which have created a significant cost for the State. Quinn had an aggressive approach to the management of claims which, at the time, forced other companies to do the same. The appropriate management of cases and claims has gone with the exit of Quinn from the sector. Insurance companies now prefer to settle out of court - sometimes on the steps of the court - without an appropriate level of detailed investigation which would manage costs downwards. The companies know that the market will carry that cost.

It can only be seen as an element of price gouging in recognising that the economy is improving in certain areas and that the burden can be carried by consumers. The haulage sector was hard pressed and the Government responded by lowering truck taxes, yet that saving is now being eaten up by spiralling insurance costs. In other jurisdictions the cost of insuring a truck varies from €1,200 to €2,500. Here, however, it ranges from €3,000 to €6,000 per truck, or even higher. That is not acceptable.

A number of things need to be done over and above what is set out in the motion. We need to examine claim management. In addition, the book of quantum should be reviewed and used by the Judiciary. We also require a greater level of consistency in terms of how courts deal with claims.

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