John Kelly (Labour) | Oireachtas source

I welcome the Minister to the House. In the past year or so we have seen many protests about water charges and so on. In some cases people were asked to pay an extra €160 when the conservation grant is taken into account. In some cases the charge was €80. In many cases there was no charge at all. Anyway, we have a bigger problem with charges. The bigger problem is the major increase in car insurance, house insurance and health insurance costs. This year, many of the costs seem to have gone up by 25%, 30%, 50% or 60% for absolutely no reason whatsoever. I know of many examples. I have one example involving house insurance. A man made a claim for an iPad that broke. There was an excess on the policy and all he was able to claim was €150, but his insurance policy went up by €300. When he rang and questioned those responsible, they told him that if he paid back the €150 they would reduce his policy by €300. They seem to be making it up as they go along.

This problem arose in 1984 and, as a result, the Motor Insurance Advisory Board was set up. The board last reported in 2004. At that stage responsibility for those duties was transferred to the Department of Transport, Tourism and Sport. Now, it appears nothing is listed on the Department's website indicating that the Department has any responsibility. There seems to be no monitoring body. Consequently, these companies are showing no loyalty to their customers. Although I advise customers to shop around, it seems to be clear that there is a degree of cartelism operating with all the insurance companies. All of them are guilty of the same thing.

I am calling on the Minister to re-establish the Motor Insurance Advisory Board. I will set out two examples for the Minister. An elderly man telephoned me. He is 73 years of age and drives a 2003 Ford Fiesta. The value of the car is €1,000. He has a 60% no-claims bonus. He is asked to pay €880 per year. A lady was on the telephone to me the other day. Her son drives a small 2002 Audi to bring him to college in Mountbellew every day. The college is not far enough away for him to get accommodation there. Last year his insurance policy was €1,400 on the basis of no claims, no penalty points and the car depreciating all the time. The premium has gone up to €2,648 this year. That is almost a 90% increase for absolutely no good reason. I heard from another young person who told me that cars 13 years or older are particularly targeted by the insurance companies. That is the reason the young man I referred to has had this dramatic increase in his policy.

We put cars through the national car test. Either the result of an NCT is of value or it is not. We have to get clarity on the matter because families are being crippled with these payments.

There is no evidence to suggest that the reason for these hikes in insurance charges is vast payouts. In fact, there is €1 billion in the difference between premium income and the published awards.

My final point relates to the 3% levy that policyholders pay. It is fine for people who are paying €200 or €300 for car insurance. They can get away with €6 or €9 per year extra. However, the young man I made reference to will have to pay an extra €158.88 because of the 3% levy. As well as re-establishing the Motor Insurance Advisory Board, I call on the Minister to introduce a set fee rather than a set percentage.