James Browne (Wexford, Fianna Fail) | Oireachtas source

I thank Deputy Michael McGrath for tabling this motion and for pursuing this matter relentlessly in this Dáil. The cost of insurance is causing a very real crisis across our country. The rapid, unjustifiable and unsustainable increases in insurance costs are undermining our national competitiveness, crippling businesses and hurting families. This is leading to widespread anger and anxiety in my own county of Wexford. However, it is not just the increase in the principal that is causing distress. Increases in excesses and the denial of claims for minor non-disclosures or for slight delays in notifying insurance companies of potential claims are all adding to distress. Furthermore, we have seen significant increases in the number of drivers being refused car insurance three times. In County Wexford, I have dealt with a number of instances where elderly women have been refused insurance for no reason other than their age, which is blatant discrimination.

All these issues have been ongoing for some time now. The increases in insurance premiums reflect a combination of Government imposed costs, poor regulation, mismanagement by insurance companies and legislative failure. I do not get any sense of urgency from the Government to tackle this issue and we are not seeing any relief on the ground. I am conscious of the requirement for parliamentary language so I will say that people rightly feel as if they are attached to another object by an inclined plane wrapped helically around an axis.

The high cost of motor insurance is preventing people from going back to work as the insurance is often significantly higher than the price of a car. Returning emigrants are being discriminated against with high insurance premiums. Taxi and hackney drivers are going out of business due to the unaffordability of insurance and this in turn limits the ability of elderly people and people with disabilities to get around. Some people are completely dependent on taxi and hackney services for mobility.

We have also seen significant increases being imposed on road hauliers. Motor insurance is mandatory; it is a legal requirement and is not avoidable. It acts as a flat charge in that it takes no account of ability to pay and as such, it affects the struggling classes more, including older people, young workers and families. High insurance costs have a disproportionate effect on such people. Spiralling business and motor insurance costs are undermining businesses. In particular, increases in public and employer liability insurance are having a very negative effect on businesses in the services sector like hotels and restaurants. I urge the Minister of State to start taking action on this matter.

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