Michael Kitt (Fianna Fail)
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I thank the Cathaoirleach for allowing me raise this matter and I welcome the Minister of State, Deputy Gallagher, to the House.

I am raising the issue of why policy numbers are displayed on insurance discs. I received a note from the Financial Regulator stating that regulations requiring the display of an insurance disc were introduced on 1 July 1986 and were signed by Liam Kavanagh, the then Minister for the Environment, at the end of 1984. The Financial Regulator gave me all the details contained on these discs, including the name of the vehicle insured, the registration number, the commencement date of the insurance policy and the expiry date. At the top of the disc is the policy number.

Although the Minister might not believe this, a number of people have contacted me stating that policy numbers are being copied off windscreens in broad daylight and people are abusing the system by quoting these numbers when they are involved in insurance claims, for example, following an accident. This should not be allowed. I suggest to the Minister that if there is a need to include the policy number on the disc, it should be put on the reverse of the disc. A number of people have approached me stating that assessors have rung them about accidents in which they were not involved and people have had increases in their premia on renewal. Nowadays insurance companies can pay up quickly in the case of small claims. There is a scam involved here and the simple answer is to put the number of the policy on the back of the insurance disc.

The Minister of State may not be able to give me all of the answers on this tonight because it has been going on for 20 years. It comes as a major shock to people when they are told by assessors that they must pay an insurance claim following an accident which did not involve them. This is wrong. It is appalling that this should continue 20 years after the insurance disc was introduced. While the idea of an insurance disc is good, I fail to understand why it must contain so much information.

I thank the Minister of State for attending the House. Perhaps he will be able to give me information on the matter.

Pat Gallagher (Donegal South West, Fianna Fail)
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I thank Senator Kitt for raising this issue. The question of vehicle insurance is vital and issues such as insurance fraud and uninsured driving are matters of concern which affect all legitimate policyholders and insurance companies. Under the Road Traffic Act 2006, enacted in July this year, the powers of the Garda were extended to allow them to seize all uninsured vehicles, whether registered within the State or otherwise.

Insurance discs now play a central part of the motor insurance regime in Ireland. The concept was introduced in 1984 by means of regulations. While such a disc system is not common throughout the whole of Europe, it is an effective system by which evidence of vehicle insurance is both obvious and readily available.

The insurance disc was introduced to reduce the number of uninsured vehicles on the road. The Garda can readily establish from an inspection of a vehicle if the vehicle is insured. In the case of an accident it enables other parties involved to establish full insurance details including the policy number and is, therefore, an aid to expediting insurance claims. The system has proved itself to be simple, robust and beneficial over the years.

The Department is not aware of any widespread practice of fraud as suggested by Senator Kitt. The officials contacted a representative body of the sector and it is likewise unaware of widespread fraud in this area. This is not to say, of course, that the many people who have contacted Senator Kitt do not have an issue with this and it is a matter we must examine.

At a recent hearing of the Joint Oireachtas Committee on Enterprise and Small Business reference was made to the practice of registering vehicles with incorrect addresses. The Minister undertook to have this issue examined. I have also noted the comments of the same committee in its Fourth Interim Report on Reforms to the Irish Insurance Market that there is a necessity to have a tight control to ensure there is an absence of fraud in the preparation of registration discs, insurance discs and NCT tests.

Senator Kitt has raised the option of not having the policy number on the front of the disc but printing it instead on the reverse. It is my view that printing the policy number on the back of the disc would reduce the apparent validity of the disc, make the number more difficult to see and make it difficult for the Garda or other genuine parties to secure this information without having access to the interior of the vehicle. In view of this matter being raised by Senator Kitt, we will consult the insurance sector further to seek its views on the Senator's suggestion and to establish if that could be considered and possibly implemented.

I appreciate Senator Kitt raising this issue. It obviously is a difficulty for some people. It can lead to fraud. Perhaps it is something that we should examine more closely. I will ensure we consult the insurance sector immediately and keep Senator Kitt informed of developments.