Dessie Ellis (Dublin North-West, Sinn Fein)

It is a legal requirement in Ireland to have at least third party car insurance to drive on public roads. Of course, it is important that people have car insurance. It acts as a safety net, protecting those insured against significant financial and personal costs, including medical bills and expensive repairs as a result of an accident.

The main contributor to the increasing cost of premiums are personal injury claims. However, figures from the Injuries Resolution Board show that there has been a continuing reduction in the number of motor insurance claims made to the board and that the value of the awards the body has paid out are down by 41% as courts are increasingly using the personal injury guidelines on awards to settle litigated cases. Figures also show that motor accident claims have fallen by 30% over the past six years.

Yet, despite these figures, which show a sharp decline in claims, motor insurance premiums continue to rise. CSO figures show that Irish motor insurance prices rose 11.4% by December 2024 and that premiums had risen for 14 consecutive months by October 2024. In the sixth annual private motor insurance report of the National Claims Information Database, the Central Bank said that the average premium cost per policy increased by 2% in 2023, while insurance companies saw their profits rise by 8%. Most people are reliant on cars for commuting, shopping and other daily activities. Cars are a matter of necessity for many in rural or outlying areas. They are also a necessity for those with disabilities and those who care for them and for the sick and the elderly in communities. Cars are often the only option when there is a lack of reliable public transport. These increases in car insurance premiums are adding to the burden of people struggling in a cost-of-living crisis.

Sinn Féin's Judicial Council (Amendment) Bill 2021 will tackle what is in effect price-gouging by the insurance companies. The Bill will force insurance companies to prove that they have passed on to the consumer any benefits they receive instead of holding on to such benefits to increase their own profits. It is high time the Government allowed this Bill to pass through its Stages and come into law to help families struggling to pay bills in this cost-of-living crisis.

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