James Bannon (Fine Gael)

I welcome the Minister of State back to the House. I am sure when he writes his memoirs in years to come, he will acknowledge that 11 and 12 March 2003 were his toughest days in this House. Allied with support of this motion, I call on the Minister to appoint immediately an insurance ombudsman to control the increasingly out of control nature of the motor insurance industry.

Young drivers and their parents – who in many cases foot the bill – are at the mercy of companies who deliberately inflate prices for certain categories. Young drivers are unfortunately at the top of these categories. Though all motorists are being held to ransom and caught in the stranglehold of compulsory insurance, the problem is intensified for the young driver. Some insurance companies have a fixed discount per year for accident-free young drivers who drive under their parents' policies. While there is no structured approach to this procedure at present, it could come under the remit of a specially appointed ombudsman. Monitoring by a statutory insurance ombudsman would spread the burden of risk of insuring young drivers across more insurance companies and help reduce the cost of insurance for young people. Currently, companies who quote for young people are so few that the risks they face result in higher insurance rates.