Martin Conway (Fine Gael) | Oireachtas source

Not every Member of this House introduces Private Members' Bills. Even though Senator Lawlor has been a Member for just a few months, he has introduced this Bill, which has its finger on the pulse. I consider the level of payouts that are being made as insurance compensation to be a national scandal. There are three elements to this scandal, the first of which is the level of compensation that is being given in certain cases. Senator Lawlor went into minute detail when he provided international comparisons. Ireland is among the most generous countries when it comes to compensation in the insurance sector.

The second element of this scandal is the exceptional profits being made by all the insurance companies. If one visits the website of the Companies Registration Office, CRO, one will be able to see the extraordinary profits that certain companies are making. They are in the business of making money and - fair dues to them - they are well able to make it. Unfortunately, they do not seem to have a sense of social responsibility that would cause them to be fair to those who support their profit-making ventures. People often talk about vulture banks and vulture funds, and they are right when they say that what is going on with vulture funds is appalling. I suggest that what is going on with insurance companies is also appalling. A young driver can be charged up to €6,000 to get insured for the first time. That is discrimination against young people. We are trying to encourage young people to stay in Ireland. We often give out about nurses who go abroad. Some of them want to see the world, but many of them go abroad because they simply cannot afford things like rent and car insurance. Where will a recently qualified nurse who is starting off in the profession come up with €4,000 or €5,000 to pay for insurance? When I was knocking on doors in Corofin, County Clare, two weeks ago, a lady who answered one door told me that she runs a business in Ennis and that her insurance premium increased by an incredible 60% last year. It is difficult for businesses to keep sustaining that type of increase. Who is to say that her premium will not increase by a further 60% next year? There is nothing to stop that from happening. It is difficult for people to keep their staff employed and keep their businesses going in such circumstances. It is difficult to support the economy and to support jobs when this is going on. I have great regard and respect for people like Pat McDonagh who faced down what was going on with the insurance industry a number of years ago when a number of fraudulent claims were made.

That brings me to the third element of the scandal in the insurance industry, which is the number of fraudulent claims that are made. All citizens have a responsibility to call out people whom we suspect of submitting fraudulent claims to insurance companies. Everybody suffers when such claims are made. When we watch advertisements on television and listen to them on the radio, it is pointed out to us that everybody ends up paying as a result of fraudulent claims. The three issues I have mentioned are interwoven into one. Senator Lawlor is reflecting the desire of the people of Ireland for us to deal with the vulture insurance companies and to cap the outrageous claims. Anybody who gets injured deserves to be compensated. There is no question or doubt about that. However, it has to be fair, respectful and appropriate.