Michael D'Arcy (Wexford, Fine Gael) | Oireachtas source

-----is not the amount we would like it to be. The book of quantum is the assessment of what the awards were for the last three years. We ask and encourage the Judiciary to have cognisance of the book of quantum. Its members do not on some occasions and if that happens, it creates uncertainty for insurers and they have to underwrite by larger amounts. If an outlying case is awarded by a judge at a rate that is a multiple of what is in the book of quantum, the insurer has to do that. It must do that to ensure that the company is solvent with regard to insurance.

I will run through the issues as quickly as possible but I have not a snowball's chance of getting through them all. The Government does not tell insurance companies how to set premiums. It is not our job. Members of this House should understand we are not allowed to do that.

Members of this House may be aware that there is a protocol in place with Insurance Ireland in regard to returning emigrants.

I wrote to Insurance Ireland in December regarding a perceived issue with older drivers but have not received a response. Once such response is received, I will bring it to the attention of the House and the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach.

Notification before settlement is a bugbear of many who take out insurance. Discussions are ongoing with Insurance Ireland on a protocol to require insurance companies to notify policyholders of claims made against them before settlement. As regards employers' and personal liability, under data protection regulations to come into effect in May there will be a requirement that CCTV footage only be stored for 28 days. We are attempting to ensure that a claimant must inform the alleged liable party of the claim within a 28-day period in order to allow an opportunity to retrieve and store relevant footage for usage as potential grounds for a court defence.

An insurer from another European countries may offer insurance in Ireland if it is a member of the Motor Insurers Bureau of Ireland, MIBI. The owner of a vehicle registered and based in Ireland may only legally take out insurance with a member of MIBI and may not purchase insurance from a company in another which only holds membership of the national bureau of another member state.

I do not have sufficient time to address all the issues I wish to cover. I have offered to present to the Joint Committee on Finance, Public Expenditure and Reform, and Taoiseach on motor, employers' and personal insurance. Much has been done and much remains to be done. We will spare no effort in ensuring all aspects of the insurance industry are dealt with. I compliment the staff of the working group on insurance, who have put in a big shift and are the best staff with whom I have worked in my time in Government and politics.

At one stage, insurance premiums were 57% higher than at their low point during the price war. Price wars never turn out well. The Central Statistics Office has indicated that there has now been a reduction of 17% in the cost of premiums and, although not all customers have experienced such a decrease, that is the nature of insurance. That gives an adjusted increase of 40% since the low point. I wish to ensure a further reduction in the cost of premiums. It will not be possible to reduce them below their previous lowest level because at that time they were too low as a result of the price war.

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