Michael Collins (Cork South West, Independent) | Oireachtas source

I welcome the opportunity to speak on the Bill, which seeks to amend and extend the law relating to insolvent insurers and to provide for the establishment of a fund to be known as the motor insurance insolvency compensation fund. This fund will be controlled and managed by the Motor Insurers' Bureau of Ireland. Vehicle insurers will be asked to make a contribution to that fund. What effect will this have on people's premiums?

As we are all aware, in recent years insurance costs have become totally unjustified and unsustainable. They are placing huge financial pressure on people and businesses. These rising insurance premiums simply cannot go on. We are hearing a lot of sympathy for young people this week, but we did not hear much sympathy for them last week. When getting insurance, every obstacle is being put in front of them. On the one hand we criminalise their parents if they drive on their own. If they are lucky enough to get a driving test and pass it, they are then being hit with out-of-control quotes for insurance which they cannot afford. It is very difficult for young people to get off the ground.

As other Deputies have said already, I am inundated with constituents coming to me distressed and upset over the quotes they are getting for motor insurance. Some of them get no quote if they have a car more than ten years old. We need insurance companies to be transparent and to explain why they are increasing their customers' premiums. Insurance companies are in total control of what is going on. Nobody has any control over them; they are a law onto themselves. Fraud and exaggerated claims need to be clamped down on. There should be zero tolerance for these types of claims and we need to ensure they are pursued and tackled more aggressively by the Office of the Director of Public Prosecutions and insurance companies.

Owners of cars of ten years and older are being penalised with huge insurance premiums. Why are these motorists quoted these high premiums as we have the NCT to ensure all vehicles are roadworthy? Why is the owner of a car of ten years or older getting such an excessively high insurance quotation and in many cases not getting any quotes when compared with the owner of a similar car that is newer?

Another important point to mention regarding motor insurance is people returning to Ireland after living abroad who are now accessing motor insurance and being quoted very high premiums. We should be welcoming back people who have decided to return home and ensuring they are not priced out of the market. We should also look at businesses and community organisations. Many have been forced out of business. Nightclub owners are at the end of their tether.

We need to see urgent action. The time for talking is over. Action on the ground is needed. In Kilbrittain secret gardens, the O'Mahony family has put a huge amount of money into building a fantastic activity centre enjoyed by many children throughout west Cork. Their insurance bill this year went from €4,000 to €5,000 to close to €25,000. They employ more than 20 people in a rural community. They cannot sustain it. They will take the hit for one year but will go out of business the next year and we are standing idly by as politicians. We are doing an awful lot of talking. I have been talking about this for two and a half years and nothing is happening on the ground. The bottom line is people are paying excessively high insurance premiums and we need to look at ways to reduce these premiums as insurance prices are not sustainable.

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