Paul Connaughton Snr (Galway East, Fine Gael)
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Question 228: To ask the Minister for Finance the reason a vehicle that had been written off by an insurance company as being economically beyond repair cannot be insured again as it has been restored to a proper standard, that is NCT tested; if there are any circumstances in which such a vehicle would be allowed back on the road in view of its excellent state of restoration; and if he will make a statement on the matter. [37902/10]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Financial Services Ombudsman is a Statutory Officer, charged with investigating complaints from the public against all regulated financial service providers. This would include complaints against insurance providers. However, as the Financial Services Ombudsman is independent and impartial, it is solely at his discretion whether or not to accept jurisdiction on a complaint. Each complaint is taken on a case per case basis. An insurance company's refusal to offer a motor insurance quotation would ordinarily not be sufficient grounds to warrant an investigation by the Financial Services Ombudsman. The decision by an insurance provider to decline a quotation to a potential consumer is a commercial decision by that insurance company that the Financial Services Ombudsman would not question, unless there were grounds that such a decision to decline cover was unreasonable or discriminatory in the circumstances. In essence, the insurance provider may feel the risk is too great to insure that individual.

However, the Insurance Information Federation operates an agreement known as the 'Declined Cases Agreement'. This is an agreement which is adhered to by all motor insurers in Ireland. Under this agreement, the insurance market will not refuse to provide motor insurance to an individual seeking insurance, if he/she has approached at least three insurers and has not been able to obtain cover from them. In general, the insurer first approached will be required to provide the individual with a quote.

Where an individual has held a policy within the previous three years, the insurance company concerned is obliged to provide the individual with a quotation. Again, this is subject to the proviso that refusals have been received from three insurers (of which the previous insurer may be one). The only grounds on which an insurer can refuse cover are where to provide insurance would be contrary to the public interest. The Declined Cases Agreement is administered by a Committee made up of representatives of each of the companies which have signed up to participate in the agreement. The Committee also includes a representative of the Consumers' Association of Ireland and the Financial Services Ombudsman Bureau as external observers. If it is impossible to identify which insurer was the first approached for a quote, then a rota of insurers comes into effect and the Committee allocates the risk to the insurer on the rota. The Committee can also decide whether a quote is so high or the terms so excessive as to make the quote tantamount to a refusal, in which case it will review the matter.

If a consumer wishes to seek more information regarding the Declined Cases Agreement, the Insurance Information Federation may be contacted directly.

Conversely, if it is the case where the consumer is unhappy with the valuation placed on his or her motor vehicle after e.g. the car was deemed to be beyond economic repair, this is a matter which can be investigated by the Financial Services Ombudsman. The Ombudsman's findings are legally binding on both parties, subject to an appeal to the High Court. However, as pointed out previously, the decision as to whether or not to accept jurisdiction on a matter is solely at the discretion of the Ombudsman, particularly if there is an alternative option available to either the complainant or the financial service provider. Any queries regarding making a complaint against a financial service provider should be directed to the Financial Services Ombudsman Bureau.

I have no responsibility with regard to the NCT; nor have I responsibility with regard to whether or not motor vehicles may be allowed on public roads.