Maureen O'Sullivan (Dublin Central, Independent) | Oireachtas source

For me the whole area of insurance should be about assurance and reassurance and that, in the event of an accident, an injury or a fatality or, with property, in the event of theft, damage or vandalism, people feel assured and reassured that their insurance will cover them. What we are seeing in the insurance industry recently, however, is this whole spiralling. The word I would use to describe it is "excessive". There is a subtle form of blackmailing to have insurance for every possible eventuality. We are seeing claims being sought and claims being granted by insurance companies that are highly controversial and really defy all common sense, with the result that everybody's insurance premiums increase.

I want to look at three groups in particular. I know we are talking about Setanta and Enterprise in particular, but these particular groups have been in touch with me to a considerable extent. Taxi drivers are one such group. They use their cars to make a living. Numerous constituents who are taxi drivers cannot afford to work now because of the insurance increases. These are drivers who have completed their public service vehicle tests, they have kept their vehicles up to stringent standards by completing all the service vehicle checks and they have to deal with increased anti-social behaviour. The increases are making it increasingly difficult for them to work. A couple of them have said that they have been quoted excesses of €10,000 per year.

Pensioners are another group. Many insurers will not insure persons over the age of 75, full stop. They are not even looking for medical documentation. We know the reasons that pensioners can rely on their cars: for getting about, a sense of independence and leisure activities. For some of them their cars are a necessity, sometimes to pick up grandchildren. In the case of retired people on State pensions who cannot afford to insure their car we are talking about increasing isolation and loneliness. One particular constituent saw a 70% increase in her insurance premium this year. This was a lady who had a no claims bonus for more than 20 years and had not changed her car. She is now unable to use her car and she lives in an area that is not best served by public transport.

We see the working poor and the low and middle income families. These, again, are families who rely on their cars for everyday use, whether it is for dropping children to school, for appointments or for work. The increase in the cost per annum is just phenomenal. We know that part of the problem is companies like Setanta and Enterprise, foreign registered companies, going into liquidation. It is quite astonishing that the whole industry is taking collective responsibility. As somebody pointed out, it is somewhat like one supermarket going bust and the rest of them coming in to bail it out.

The choice of the insurer is for the individual but there has to be a real knowledge and awareness regarding the companies and where they are regulated. There is a need for common standards across all the jurisdictions in the EU. We have to acknowledge that very often cheapest is not the best value.

With these massive increases we are seeing an increase in people not taking out insurance. We see that in recent figures from the Garda. That is, of course, creating even more problems. We especially see that with young drivers when accidents occur. One of the recommendations in the report is to establish a fully functioning database which would allow gardaí to check insurance compliance through technology like automatic number plate recognition.

I believe the individual is doing his or her best in terms of insurance but I do not see the insurance companies meeting people half way. We know the discrepancy between what the legal profession is saying and what the insurance industry is saying regarding costs. I am sure the truth lies somewhere in between.

We are seeing staggering amounts paid out by insurance companies. Some €1 billion yearly in 2011 and 2012, slightly less in 2013 and €1 billion in 2014. There is a need to tackle these overly generous awards. They are not proportionate to the claim. We have to get out of this compensation culture that so many are in because it is not fair to those who have genuine claims.

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