Séamus Healy (Tipperary, Workers and Unemployed Action Group) | Oireachtas source

I welcome the opportunity to say a few words in this debate. I acknowledge the work of the Rural Independent Group in bringing forward this motion. It is important to say that the motor insurance industry is hugely profitable but there are very serious issues within and between companies and in the industry's dealings with various categories of drivers. Allegations of anti-competitive and cartel-like practices are being investigated by the European Commission and the Competition and Consumer Protection Commission. There is also the question of the companies' dealings with various categories of drivers, including young drivers, taxi and hackney drivers, drivers of ten-year-old cars, returning emigrants, drivers with five or more penalty points, drivers with previous experience with company cars and van drivers. There is also the question of the lack of transparency regarding how and on what basis premiums are calculated. Between 2011 and 2016, claims did rise by about 23% but premiums rose by a far higher percentage. These huge premiums are putting great pressure on individual drivers and businesses. Increased premiums are largely the result of companies trying to recoup short-term losses on a failed investment policy.

The cost of insurance working group, which was set up about 15 months ago and reported a little more than 12 months ago, has not made a lot of progress but has certainly made some progress. However, a number of actions recommended by the working group's report have not been implemented or have been delayed. It is important that those recommendations be dealt with speedily, particularly in the area of legislation to underpin the protocol with Insurance Ireland on the communication of large increases in premiums, legislation for claims, the establishment of an information database and the establishment of a reliable data set to examine the impact of legal and other fees on personal injury claims. Those issues should be dealt with urgently.

Insurance is a legal requirement. In particular, the ability to get insurance at reasonable rates is vital in areas outside Dublin and the larger cities but this is not the case. As there is inadequate public transport in most of rural Ireland, people need cars and reasonable insurance for the business of daily living such as going to work or school, shopping or going to sporting events or religious occasions. There is no doubt public transport has been and is being withdrawn from rural areas. Therefore, it is not unusual to find workers in rural areas driving an hour or more to work and an hour or more home from work.

Without a car and reasonable insurance it is almost impossible for people to work. In rural areas without the Luas, DART, Dublin Bus and the rail system, a car is vital for every aspect of daily living.

The insurance premiums for cars over ten years of age which have current and valid NCT certificates have a major impact on the cost of keeping a car particularly in rural Ireland. We all know that rural roads are atrocious and to maintain cars on those roads is very costly. Drivers are maintaining their cars to ensure that they can have their NCT certificate and are finding that insurance companies are refusing to cover them or are imposing huge, unreasonable and impractical premiums. These roads are so bad that the chief executive of Tipperary County Council wrote to Oireachtas Members recently informing us that he would require €180 million to bring rural roads in County Tipperary up to a reasonable standard over a reasonable period of time. That indicates the kinds of roads on which cars in rural areas are driving. Serious damage is being done to those cars by those roads, increasing the cost of maintaining those cars and ensuring that they pass the NCT.

The Rural Independent Group rightly raised the issue of returning emigrants. There is also the question of either refusing insurance or having huge premiums for people with five penalty points or more. There is the whole question of lack of transparency in how premiums are calculated. We also need an independent and robust appeals process. The current system is effectively a charade. Drivers end up at best with their old insurance company but with outrageous premiums. We need a nationalised insurance company to provide insurance to drivers on a not-for-profit basis.

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