Michael Noonan (Limerick City, Fine Gael) | Oireachtas source

As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation but I am prohibited from interfering in the provision or pricing of insurance products. The provision of insurance cover and the price at which it is offered, including the granting of no-claims discounts, is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks. The risks are considered by insurance companies on a case-by-case basis. The costs and risks of providing motor insurance cover can vary between different countries.

Insurance Ireland has informed me that, in general terms, where there has been no motor insurance in an individual's name and there is a gap in cover of two years or more since his or her last insurance, the no-claims discount is deemed invalid. However, Insurance Ireland has further stated that if the individual can produce confirmation that he or she was continuously insured and remained claim-free in his or her own name while away, that will be taken into consideration.

My Department has embarked on a review of policy in the insurance sector which is being undertaken in consultation with the Central Bank and other Departments and agencies. The objective of the review is to recommend measures to improve the functioning and regulation of the insurance sector. The first phase of the review is focused on the motor insurance compensation framework, and this work is nearing completion. The next phase of the review involves examining the factors contributing to the increasing cost of insurance and identifying what short-term measures could be introduced to help reduce the cost of insurance for consumers and businesses, and also what initiatives need to be undertaken over the longer term. The work will include an examination of the issues affecting returning emigrants and immigrants and will continue over the coming months.

I might add that Insurance Ireland operates a free insurance information service for those who have been unable to obtain a quotation for motor insurance or feel that the premium proposed or the terms are so excessive that it amounts to a refusal to give them motor insurance. Such people should contact Insurance Ireland directly.

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