Noel Ahern (Dublin North West, Fianna Fail)
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Question 128: To ask the Minister for Transport if he will clarify the position in relation to companies providing car insurance; the rules and criteria under which they operate; if they can discriminate against persons on grounds of geographic location (details supplied); and if he will make a statement on the matter. [25359/09]

Noel Dempsey (Meath West, Fianna Fail)
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It is compulsory under the Road Traffic Acts to have motor insurance to use a motor vehicle in a public place. A motor insurance policy is a private contract between the motor insurer and the driver. Insurers assess risk and charge premiums based on that risk assessment. Motor insurance companies in Ireland insure vehicle drivers rather than vehicles. This enables them to calculate the risks associated with a specific driver and thereby price the insurance premium accordingly. The factors taken into account when calculating the risk include the age, gender and driving experience of the driver, the engine size of the vehicle and its usage together with the address at which the vehicle is based. On occasions insurers may decide that they do not wish to cover the risk.

Because motor insurance is compulsory, The Government has an agreement with the motor insurance industry called the Declined Cases Agreement. By virtue of this agreement, where a qualified driver cannot secure motor insurance or in instances where the premium is so high as to be tantamount to a refusal to quote, the Declined Cases Committee operated by the Irish Insurance Federation will seek to find a motor insurer.