Eugene Murphy (Roscommon-Galway, Fianna Fail) | Oireachtas source

Insurance costs mean that people are not able to get insurance. There is a serious problem with the whole insurance business. While we are focusing specifically on motor insurance, business and flood insurance are also a problem. The whole insurance business must be reviewed. In recent months, we have seen raids on certain insurance businesses and there is an ongoing investigation. It would be interesting to find out when that investigation will come to a conclusion and what will be the outcome. Every aspect of the insurance business needs to be addressed.

Like Deputy Mattie McGrath, I welcome the Bill and my great wish is that it can be dealt with as quickly as possible. I have an issue with the 2% levy. While I accept there has to be a fund because there is no such thing as a free dinner, I want to know for how many years the levy will apply. Has this been calculated? It must not become a permanent fixture in insurance costs.

We heard many examples this evening of what people are suffering in the motor sector. Insurance for taxis can now cost anything from €5,000 to €14,000 and some companies will not even quote for taxis. We have all heard the stories of young people. I often talk about my daughter who has a full driver's licence and has never been involved in a crash or other incident. A decent car can be obtained for €3,000 or €4,000 but the best quote somebody like my daughter and many of her friends can get is for €5,000 or €6,000. This is a serious problem for students, young workers and people living in rural Ireland where there is not the same level of public transport. I am sure the Minister of State sees it in his own county of Wexford.

The issue of returning emigrants also arises. They seem to have major difficulty in getting insurance cover, or have to pay an exorbitant fee for it, even if they have a good, clean record. The issue also affects lorry drivers and road hauliers. It is a fact that many road hauliers are based outside the country, in other parts of Europe, which causes Ireland to lose business. The hauliers say that they simply cannot afford it.

It is great to hear so many contributions on the issue of ten year old cars. They might have a full NCT and a very low mileage. I raised this issue in this House approximately ten months ago. I made the point at the time that there are many ten year old cars with low mileage, particularly those owned by people living in cities who do not run up large mileages. These cars are in perfect condition and fly through the NCT. So many young people, in particular, are disappointed when they look for insurance; they are told that companies cannot insure a ten year old car. We are living in the era of NCTs, which is a good practice. It forces us to look after our cars more carefully; we have to. I fully endorse the process. However, there are people who put their car, which is in perfect condition, through the NCT, who then go to the insurance company and cannot get cover. I am sure that the Minister of State knows this from his own constituency.

We are in a crisis situation in terms of the insurance industry. I welcome this Bill, arriving as it does in the last days before the summer recess. However, it is extremely important that it is pursued with absolute vigour in the autumn. The approach of the Government, and I do not mean this as an attack on the Minister of State because I know he means well in this area, has been extremely frustrating and slow. It is a complex area, and I am not going to deny that, but motor insurance premiums have shot up by 31% since 2012. That is a fact. There is currently no index tracking business insurance costs. Despite this, the major recommendations of the cost of insurance working group have yet to be acted upon. There are many issues to deal with, and in the meantime people are suffering, unable to get cover. This must be tackled as a matter of urgency.

Like many other Deputies in this House, I am concerned at the slow pace of progress on this issue. We will speak again about flood insurance and business insurance but the Bill this evening deals with motor insurance. The Government must realise that this is a huge issue for many people, and must be progressed as quickly as possible. The Bill raises a number of issues in terms of the compensation fund, which has been well explained in the details. I do not have an issue with that, and generally accept the levy issue. I do not want it to become a permanent levy on everyone, but I am a realist and know that a fund has to be in place. I urge the Minister of State to pursue this issue with vigour, and ask him to go back to his senior Cabinet colleagues to ensure we progress this issue as quickly as possible. There are many people out there who are trapped due to insurance issues and the cost of insurance. In many situations, they cannot get insurance cover at all.

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