Pat Deering (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank the office of the Ceann Comhairle for selecting this important issue. I compliment the Minister of State, Deputy D'Arcy, on his work on the insurance sector. I raise an issue of which he is aware as I have previously brought his attention to it, namely, unfairness in the insurance sector. The issue needs to be highlighted at the highest level.

I refer to a married couple, George and Mary, who are aged 90 and 86 years, respectively, and effectively being penalised for living too long. That is a damning indictment of the aspect of the insurance industry I wish to highlight. In 1984 they took out a whole-of-life insurance policy to provide for their funeral expenses and so on. In 1984 Mary was paying £50.79 for life cover to a value of £25,394. In 1989 George took out a policy at a cost £50.15, with a sum of £12,697 to be paid at the end of his life. The couple were planning for the future by putting in place a fund for their final days. They were doing the right thing which they were being encouraged to do. However, they have been crucified for doing so. Mary has paid £34,000 and George, £48,000. Mary is now paying €242.98 for cover to a value of €34,890, while George is paying €311 for cover to a value of €29,622. Each year they are given the option to increase their monthly payments or reduce the level of cover. If they decide to stop paying their premiums, they will lose every penny they have paid during the years. They have paid a significant amount of money in the past 35-odd years to provide more than adequate cover in their final days, including to meet funeral expenses and so on. They are being penalised for living too long.

This is an example of the price gouging seen in all segments of the insurance sector in recent years which extends to the public liability insurance issues, whereby companies have gone out of business because they were unable to afford to pay their insurance premiums. Under the whole-of-life policy system, those who are encouraged to do the right thing well in advance of their later years are being penalised for living too long. I ask the Minister of State to begin an investigation and give this issue the attention it urgently requires.

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