Brendan Ryan (Labour)

The tardiness with which the report of the MIAB was first accepted and then published was disgraceful. I have never figured out the reason the Government took so long to get and then publish it. Nor do I understand the reason it is taking so long to implement. It was particularly damning. The great thing about actuaries and actuarial studies is, depending on the assumptions drawn, one can prove whatever one wishes. Much of it relates to medium and long-term assumptions about rates of depreciation and other matters. It demolished much of this once and for all.

It is important to remember that the occasional large award to a tragic individual who has been paralysed does not drive up the cost of motor insurance. The cost is driven up by comparatively small claims doubled by the enormous fees of the legal profession and, in some cases, those of the medical profession. I am married to a doctor and must be careful about what I say.

Every item of insurance ought to be based on publishable actuarial evidence. If one has a full no-claims bonus and goes three years without holding insurance, for whatever reason, one loses the no-claims bonus. There can be no actuarial or other evidence to justify this. The companies know they have one caught by the "short and curlies" and increase premia accordingly. What evidence could there be to show that those who have achieved a no-claims bonus and cease to drive for three years pose a greater risk than those who have continued to drive?

I am sure the process is full of other matters like this. Insurance has been withdrawn from a skateboarding arena in Cork. While no claims were made against it, after one year in business it could not find a company to give it a quote. This caused 300 or 400 youngsters to lose a venue where they could enjoy themselves and do something in their spare time. This cannot have been based on any actuarial evidence; the companies in question decided it was an unknown quantity and did not want to insure it. This is happening all over the country.