Michael Moynihan (Cork North West, Fianna Fail) | Oireachtas source

I welcome the opportunity to speak on the Bill. I compliment our finance spokesman, Deputy Michael McGrath, on the work he has done for those affected by the Setanta Insurance issue and on the amount of work he put into our Private Members' business.

I am disappointed the Government did not move a little faster on trying to pass the Bill in both Houses prior to the summer because people have been living a nightmare since the collapse of the insurance company. A number of issues arise in this regard. First, there are the difficulties the affected people have had regarding insurance and existing claims. Also to be considered is the legacy and the 2% levy to be imposed on insurance.

Society from top to bottom is concerned about how insurance is working and crippling people. Deputy Michael McGrath mentioned small festivals. Right across the spectrum, however, from vehicle owners, homeowners and those seeking public liability insurance to businesspeople, people have been very seriously affected by the rising cost of insurance. There is unanimity in this House on this issue and its seriousness. A series of legislative changes need to be made in the Houses to effect real and substantial change in the insurance industry.

The Minister of State is meeting people every day and attends meetings throughout the country so he must be encountering the same issue we encounter, which is that nobody appears to be getting to grips with the rising cost of insurance. A new group that was formed, the Business Insurance Reform Group, met the Minister of State last February when it was here for a Fianna Fáil Private Members' motion. That group seeks major change. It and other groups and businesses have sought substantial changes in different legislative measures in this regard. There have been reports on how the cost of insurance has stagnated in certain sectors of motor insurance, but that is not enough. What we need is an absolute understanding from the Government down that insurance is a challenge for everybody.

Last week, at a meeting in a nearby hotel, Members heard about problems people were having with regard to ten year old cars. That is another issue that has manifested itself. The logic of it is very difficult to understand. These cars are tested every 12 months and are deemed to be roadworthy yet a loading is imposed by the insurance industry. People who left this country in the past nine or ten years are returning from other countries and we welcome them back. They have been driving without claims in this jurisdiction and other jurisdictions over the years but they are being given loaded quotes of €3,000 and €4,000 for insurance policies. That is simply not good enough. This is one legislative measure to deal with a company that collapsed and left people who had paid their premiums high and dry. Industries and businesses are making calculated decisions not to take out insurance or pay an insurance premium. This is extremely dangerous. It is dangerous for them with regard to their personal liability, their homes and so forth.

We must have an insurance industry that works in this country. We have a growing population and a growing number of people are paying into an insurance pot. The logic of how insurance premiums are rising must be explained carefully and we must be shown how the formulas are done because it is challenging to know why the premiums are being loaded in many insurance companies. We must be very clear that if a person pays for an insurance policy and if there is a claim against that policy it must be explained to the policyholder why the claim has arisen and that it is up to the policyholder to contest it if the person so wishes. We have seen from television programmes and from the contributions of Members on all sides of the Houses of the Oireachtas, because everybody is hearing about it, that the policyholder is never informed until he or she goes to renew the insurance and then is met with a massive loading. That is simply not fair.

I wish to turn to the other sectors, such as the charity sector, festivals and local community events. Many of these people are operating without insurance. Many communities throughout the country are considering holding charity walks and so forth, which do great good in their communities. However, if the letter of the law was applied these events could not go ahead. Charity organisations have insurance, such as some of the service providers for people with intellectual disabilities. One of them is in Charleville in north Cork. St. Joseph's Foundation had an insurance premium of approximately €100,000 but over the last two years the cost of that premium has gone up to €580,000. This organisation is serving people across five Dáil constituencies in Cork, Kerry and Limerick. It has built up massive goodwill and provides a fantastic service. It has been innovative with regard to challenges on the autistic spectrum, animal training on Liskennet Farm and so forth. It is at the cutting edge. It is a voluntary board that is working its way through by raising funds and receiving a block grant from the HSE. There is another argument to be had in that regard.

However, its premium has gone from a little over €100,000 to €568,000. That is unacceptable. It looks at that premium and the challenges. Then we find that in some instances there is only one underwriter in the country and only one quote available. That is unsustainable. If we are to have an orderly society where insurance is in place, as it must be, the premiums must reflect the conditions and must be explained to the people who are putting their hands in their pockets and paying for the insurance policies. Some of the smaller community groups, sporting organisations, community centres and so forth that are seeking insurance are seeing their premiums escalating. They have to hold one fundraising event just to cover insurance. That is unacceptable.

I believe that this is the most important issue across the spectrum as it affects all age groups from the young to the elderly as well as the business community. The people who formed the Business Insurance Reform Group were here in their droves to make their case and tell their stories. Those stories have been aired on television and elsewhere since then. They told us their experiences and that they are at their wits' end trying to ensure they have proper policies in place. Many small businesses are seeking to expand, whether it is by putting more vehicles on the road or by expanding into different sectors or areas of their business. However, when they seek insurance and see the quoted premium they realise they cannot service that amount of insurance. There is no way that St. Joseph's Foundation in Charleville can continue with that insurance cost. It is more than €500,000 for a voluntary organisation that is fundraising to expand its services and for capital investment to provide badly needed houses and facilities for people and families. We can have another debate on the amount of money being given by the HSE, but its insurance policy has gone through the roof.

The single message the Minister of State should take from this debate is that we must see a desperate urgency at Government level on the insurance problem. Our spokesperson, Deputy Michael McGrath, has been lobbying on this for some time. It is a desperate problem across all sectors. For God's sake, can something be done about it at this point?

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