Carol Nolan (Laois-Offaly, Independent) | Oireachtas source

I thank the Independent Group for giving us its time to speak on this very important issue. As many of us know, there are genuine insurance claims but there are also too many bogus claims and we need to crack down on that. It seems to be easy money for some people who want to chance their arm and cost an employer or close a business. It is just not good enough. Unfortunately, we see too much of it and we need a total crackdown. Stronger measures are badly needed. Last month, I welcomed a series of reforms that were announced with respect to the duty of care aspect of insurance law. This was after the Minister for Justice confirmed that a range of significant changes would be made, including a proposal to amend a number of sections of the Occupiers' Liability Act, 1995.

I have been lobbying for changes in the insurance sector for the past number of years, particularly around the need to enable the leisure industry and the adventure tourism sector to provide an appropriate balance between customer responsibility and occupier liability. That is why I broadly welcomed the measures announced last month as a belated but important milestone on the road to bringing back some kind of sanity to the insurance sector, particularly for the adventure and tourism sector, which was in difficulty. At one point there was only one insurer in the market that was covering the sector. I welcomed the changes, which will hopefully benefit these businesses. I also acknowledge the Minister of State's hard work in this regard. It goes without saying that this would not have happened if it were not for his efforts.

For too long there has been an excessive and disproportionate focus on penalising businesses and demanding extortionate premiums for risk management, but we have to bring back balance and cop-on to the sector and must support and protect the businesses, because they provide much-needed employment in areas where there virtually no such opportunities, such as some rural communities.

As I understand, the reforms also propose to include a voluntary assumption of risk. This should go some way towards removing the major obstacles that cause high insurance costs and the entirely negative impact they have on our community and voluntary sector, as well as the commercial sector. I raised this matter directly with the Minister for Finance last April, when I notified him only one insurer was available in the leisure and tourism sector.

There is an issue also with car insurance. People on low incomes, elderly people with older cars and young people going out to work are being charged very high premiums and that needs to be looked at because it amounts to discrimination. That Ireland pays some of the highest insurance costs in Europe for young drivers who need cars to go to college or work also needs to be considered. CSO figures show motor insurance costs have fallen by 8.6% but in many respects that has not gone far enough to benefit or help our younger drivers or to tackle the wider issue of high insurance premiums for older cars that have passed the NCT. That needs to be examined because it amounts to outright discrimination, an issue I have raised previously.

I was directly informed by a nursing home provider in Laois-Offaly that one of the major insurance companies had effectively pulled out of the market, leaving nursing homes with under 40 beds entirely at the mercy of just one provider, which is unacceptable. This could have a devastating effect on providers in the form of increased premiums and on families and residents, who will be impacted by the inability of their provider to pay the insurance quotes that will be demanded by the sole insurer left in the market. This is the last thing they need, especially at a time when we recognise the importance of shielding our loved ones in nursing homes and when our communities and families are already under severe stress.

The Government must do all it can to make the insurance market fair, transparent and competitive. In the absence of such a market, many nursing homes may be left with no options but to pay or close and that is not good enough. We need action on that.

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