Sorca Clarke (Longford-Westmeath, Sinn Fein) | Oireachtas source

I commend my colleague, Deputy Pearse Doherty, on tabling this legislation and for his tireless work on this issue to date. Since this Bill was introduced last month, I have been contacted by countless people in my constituency, Longford-Westmeath, where just last week a business owner had to take a High Court case to make sure that his insurance provider paid out on a policy. What I hear from constituents is the same across the board. They feel unfairly penalised, ripped off and that the lack of transparency in insurance policies is designed to inhibit them and to protect the insurance provider.

The grossly unfair practice of dual pricing by insurance companies must end. It is already banned in other jurisdictions and people here are entitled to that same level of protection and clear and transparent information. The practice of insurance providers penalising existing policyholders and charging them hundreds of euro extra compared with new customers must also end. Customers can clearly see this. It is freely available on the insurance providers' websites. If a person puts in his or her details as a new customer, the price offered is very different. There is no reason for the extra charge to be applied to them except for price gouging.

Providers must calculate premiums based only on the likelihood of a claim and nothing else. Any adjustments must be clearly explained to consumers. Insurance companies must use the same factors to calculate new and renewed premiums. This is nothing new for other businesses. There is no reason the insurance industry must be held to a different standard. It must value and respect consumers who have stayed with it, often for years on end, but it does not. I refer to a specific instance. An individual in a rural town in my constituency had his insurance premium increased by more than €1,100 in a year, which was not reflected when he went in as a new customer on the website.

The Central Bank must be able to enforce regulations to govern the ban. The code of practice needs to be drawn up and it has to be fit for purpose for the Financial Services and Pensions Ombudsman and for the Courts Service. The Central Bank must be given powers to sanction insurance companies that continue to use dual pricing and to rip off consumers.

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