Written answers

Tuesday, 28 June 2016

Department of Transport, Tourism and Sport

Motor Insurance

Photo of Brendan GriffinBrendan Griffin (Kerry, Fine Gael)
Link to this: Individually | In context | Oireachtas source

525. To ask the Minister for Transport, Tourism and Sport his plans to address the exorbitant cost of car insurance (details supplied); and if he will make a statement on the matter. [18311/16]

Photo of Shane RossShane Ross (Dublin Rathdown, Independent)
Link to this: Individually | In context | Oireachtas source

​Motor insurance is provided by private companies in an open and competitive market.  Pricing is a matter for the industry and I have no role in the regulation of insurers although I am concerned with the recent trend towards increasing motor insurance costs. As my colleague, the Minister for Finance stated in the Dail in a statement on insurance costs on 20 April, the Department of Finance will over the coming months be focussing on a broad review of policy in the insurance sector, in consultation with agencies such as the Central Bank, Departments, and other stakeholders, and the cost of insurance will be a particular focus of that review.

The only area within my remit whereby I can influence, albeit indirectly, motor insurance costs is through providing An Garda Síochána with the necessary legislative supports for the enforcement of uninsured driving. To that end, the Road Traffic Bill 2016, which is currently awaiting passage through this House having been passed by the Seanad, contains an amendment to the existing requirements which will allow for more robust enforcement by the Garda Síochána.

I am confident that such robust enforcement has the capacity to deliver significant savings to the Motor Insurers Bureau of Ireland in terms of reducing the number of claims with respect to compensating victims of road traffic collisions, which costs the industry and insured drivers here some €50 to €60 million per annum, where uninsured vehicles were responsible for the collision. Those savings should, in turn, have the effect of reducing the overall costs of motor insurance premiums.

Comments

No comments

Log in or join to post a public comment.