Dáil debates

Wednesday, 24 October 2018

Ceisteanna Eile - Other Questions

Flood Risk Insurance Cover Provision

11:30 am

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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70. To ask the Minister for Public Expenditure and Reform the progress being made with regard to the provision of insurance in areas in which flood defences have been erected; and if he will make a statement on the matter. [43701/18]

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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This question relates to the provision of insurance cover in areas that were prone to flooding but where flood defences have now been put in place. There are areas which have flood defence mechanisms in place that are still finding it extremely difficult to get insurance cover. What is the Department doing to ensure this will no longer be the case?

Photo of Kevin  MoranKevin Moran (Longford-Westmeath, Independent)
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I thank the Deputy for raising this question. The Government’s strategy is that as the return on its investment on flood defence schemes in the most at-risk communities, households and businesses should be able to access flood insurance. The provision of insurance cover, the level of premiums charged and the policy terms applied are a matter for individual insurers.

The Deputy will acknowledge that the Office of Public Works has no responsibility for oversight or regulation of the insurance industry in relation to flood risk insurance, or to insurance matters generally. The Office of Public Works has a very specific role in the exchange of information with the insurance industry on completed flood defence schemes to an agreed standard of protection desired by the industry.

A memorandum of understanding agreed on 24 March 2014 between the Office of Public Works with Insurance Ireland, the representative body for the insurance companies in Ireland, has a specific focus on agreeing a basis on which information can be provided to the insurance industry on flood relief schemes completed by the OPW. It is important to note that the memorandum requires that while insurers take full account of information provided by the OPW on completed flood defence schemes, it does not guarantee the availability of flood risk cover in the locations for which information has been provided by the OPW. Since that time, the level of flood insurance cover for homes and small businesses for areas protected by OPW flood defence schemes has on average increased from 77% to 82%.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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The Minister of State will be acutely aware of the devastation caused by flooding to family homes and businesses. I certainly could take lectures from him as opposed to giving him any advice in that regard. When people go through the trauma of having to move out of their house, having availed of cashing in their insurance policy, they will not get insurance cover again for as long as that house or business remains in an area that is on a flood plain or liable to flooding. We would agree on that. However, where good work has been done by the Minister of State's Department or local county councils and flood defences have been put in place which alleviate the risk of any future flooding, it is simply not good enough that people in houses in areas where that work has been undertaken, at a large expense to the State, continue to be refused house insurance. They are living in their homes and the very minimum they can expect is to have the protection of a house insurance policy. When can we expect the Government to ensure that in every area where flood defence mechanisms have been put in place, people will be able to avail of a house insurance policy?

Photo of Kevin  MoranKevin Moran (Longford-Westmeath, Independent)
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I acknowledge what the Deputy said about the good work my Department and the local authorities do, and I also recognise that. Earlier this year thanks to my colleague on my right, the Minister for Finance, I secured €1 billion for the protection of the people's property, 95% of whom will have their property protected as a result of putting in place of flood defences over the next ten years.

Where we have installed defences, we have passed on that information to the insurance companies. Coverage has increased from 77% to 82%, which is a major improvement on where we were. Insurers are now acknowledging work that has been done by insuring people.

I was down the country yesterday. Everywhere I go, people ask me to let their schemes start so that they can be protected and that they will worry about insurance afterwards. That is not the answer that some want to hear, but protecting these people is my priority. I have worked with Insurance Ireland and provided it with information to try to make sure that it picks up on the work we are doing and insure the people in question.

11:40 am

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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The simple point is that 18% of households where works have been completed still cannot avail of home or business insurance. For the most part, the family home is people's pride and joy and the largest cash outlay they will ever make. If anything were to happen to it, they would not have the capacity to replace it.

Must legislation be introduced to address what insurance companies are doing? I acknowledge the increase in coverage to 82%, but that leaves 18% without insurance. Are there figures for the number of houses and people who cannot avail of insurance? We are here to ensure that everyone can benefit from the improvements, not just a select few. While I acknowledge the work that has been done, how can we ensure the households that are unable to avail of home insurance can do so in future, given the works that have been done?

Photo of Kevin  MoranKevin Moran (Longford-Westmeath, Independent)
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I acknowledge the Deputy's comments, but I must also acknowledge the work that has been done and the increase in insurance coverage. Everyone wants to beat insurers with a stick, but after working with them and giving them the information they require, they are now stepping up to the mark. I would like to see it happen faster, but I must also acknowledge that, by working with them, we are getting through the problem the Deputy outlined. Where we have built defences and people have gone back to insurance companies through their local authorities and the OPW, they are getting insurance.

Photo of Robert TroyRobert Troy (Longford-Westmeath, Fianna Fail)
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Except the 18% who are not.

Question No. 71 replied to with Written Answers.