Paul Daly (Fianna Fail) | Oireachtas source

I welcome the Minister of State and I welcome the report and its recommendations. The key issue now is in its implementation. I do not know if the recommendations go far enough. If we go to the bone on this issue, we know that it is compulsory to have motor insurance so what greater business is there to be in, selling a product which is compulsory for consumers to buy? The insurers can name their price. This, in my opinion, is the root of the problem. As Senator Craughwell said, there is a cartel in operation.

Much of the information that has come forward regarding databases and the lack of information is a fallacy. The State has improved conditions for insurance companies hand over fist in recent times. We introduced the penalty points system, which is a check-and-balance system for the insurance companies each year in respect of the renewal of insurance policies in the context of the quality of drivers. This has not helped. It should have been an ideal guide for the companies. I do not believe that anybody would argue over an increase in cost of an insurance policy because of penalty points, etc. This measure, however, has not had an effect.

Over 40 years ago, we put people on the moon. Today, a person cannot tax his or her car unless he or she quotes an insurance policy number. Every car in the State is registered by vehicle registration so that a computer can tell us when our motor tax is due. That computer can also tell if a person has not taxed his or her car and a red light goes on if the car is not taxed. If it is taxed, then a person has an insurance policy number so that it is insured. If it is taxed with an invalid insurance policy number, another red light should light up somewhere that this car is not insured. All of these computers have the ability to talk to one another. That is joined-up thinking. As Senator Craughwell quite rightly stated, insurance companies are sharing information and have been doing so for a long time. I shall give an example. I am involved with the National Ploughing Association. A man who was partaking bought an old second-hand tractor for competition ploughing in Northern Ireland. It was never going to be on the road and was just for use in competitions on private lands. He did not register the tractor in Ireland but he did obtain a third-party insurance policy for fear of injuring somebody during an event. He received a letter from Revenue six months later saying that it knew he had the tractor and that it was not registered in Ireland. Where did Revenue get that information? It was because he insured the tractor. Who was sharing that information and what database is there? We need to dig much deeper into this matter. There is nothing in the recommendations that would help to reduce the price of insurance for a young driver next year who may have been quoted up to €5,000 for insurance cover on a car valued at €2,000 or €3,000. I do not see anything in the recommendations for that person. The two figures quoted so far as the reasons for increases are an average breakdown of €30 per policy for uninsured drivers and an average of €50 for exorbitant claims. That is €80, which is 10% of an €800 policy. This would mean that a quotation on the same policy next year would be €880 - not €4,800. While I welcome the recommendations, I would look monitor very closely how they are implemented and what results are forthcoming. There is a lot more to be done to get to the root of the problem, which is cartel-driven pricing.