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

I will probably only use five of the remaining six minutes as Deputy Kelleher has addressed many of the points we all want to make about insurance.

I welcome the Minister, Deputy Humphreys, back from China. She certainly did not come back on the slow boat because I saw a picture of her there recently and she is back here today. I think she had a successful trip. I say, "Well done," to her and all those who went with her from the agencies.

The Bill is another important step in dealing with a situation that has been out of control for many years. There has been much talk in Dáil Éireann and throughout the country about insurance claims and the payouts made. One might wonder sometimes why such a person was wearing a collar or how he or she got hurt and where the accident occurred. That said, I wish to be clear that I do not have a difficulty in looking after anybody who genuinely has an accident and his or her costs resulting from it. I am sure that is the case with most people.

We can talk again about the cost of motor insurance. Even this week I have heard from young people who have a full driving licence and not been involved in an accident, yet they are being asked for between €4,000 and €5,000. I mentioned in the House recently that my daughter who has a full licence and a good record had received an insurance quote for almost €6,000, which is horrible. I welcome the slight improvement in the position in recent months, but it is still an horrific scenario. It is a problem especially for young people, whom, as Deputy Kelleher said, have to travel long distances to work, as I do. Like me, the Minister comes from a rural constituency. I accept that it is not possible to have public transport in every area. As a result, for some people having a car is very important, especially young drivers. Many good things have happened in regard to road safety. Young people now have to undergo a rigorous programme in order to obtain a driving licence. That, in itself, should result in a reduction in the cost of insurance.

The Minister is also aware of the shockingly high cost of insurance for businesses. I refer, in particular, to the hospitality sector. There is a small country hotel in my town that does a lot of business and the annual insurance bill of which has increased to €50,000. A local family took it over some years ago. The hotel needed to be taken over and the family have made a fantastic success out of it. They are very hard workers and employ 26 people. Initially, when they took over the hotel, their public liability insurance bill was €12,500 and because it was a good thing to do, they decided to seek a reassessment. It was recommended that the cost of their public liability insurance be increased to €21,000 so as to provide a good level of cover. Four years later, that insurance bill has increased to €50,000. In the intervening four years there have only been two very small claims.

It really is a challenge for that family and for anyone in businesses like that. There is no need for me to tell the Minister this because she knows. Such businesses have to face these bills each year before taking in a penny. We can all say many people are going into these places and they are all doing well. We can increase the VAT rate again and so on, but the reality is there are vast bills to be paid behind the scenes. As Deputy Kelleher said, in many situations these bills now outstrip the cost of rates.

Section 9 deals with the book of quantum. This has been the subject of much discussion in recent years. It is now dawning on people that it is high time to look at the book of quantum. The fact that this will be reviewed every three years is a good thing. It is the bible used by the courts to award people money. Sometimes people think a judge decides on a given amount of money, but in reality he or she is looking at the book of quantum and make decisions based on it. It is good that the book will be updated at regular intervals. The book of quantum was first published in 2004. It was not updated for 12 years - until 2016. The fact that an update will be done every three years is good news. It will have a positive effect on the insurance business.

Information shows us in the courts some 12,000 cases are decided on annually and 60% of claimants accept the awards. It is incredible to think that there was an average increase in the cost of motor insurance of 66% between 2013 and 2016. Again, many questions have to be asked. Many questions are now being asked about the extraordinary level of increases. Certainly, some of this goes back to claims being made.

We are moving forward and things are moving in the right direction. This has to happen because it is a major crisis. The public have been talking about this for far too long. Like Deputy Kelleher, I welcome the Bill. I hope we can move things on swiftly and make real changes because Irish society is calling for this to change once and for all.

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