Niall Collins (Limerick County, Fianna Fail)
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135. To ask the Minister for Finance his views on some motor insurers restricting the availability of motor insurance cover to cars older than 14 years and refusing to give quotes in cases, despite consumers having a clean record and NCT certificates; and if he will make a statement on the matter. [28240/16]

Michael Noonan (Limerick City, Fine Gael)
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As Minister for Finance, I am responsible for the development of the legal framework governing financial regulation.  Neither I, nor the Central Bank of Ireland, have the power to direct insurance companies on the pricing of insurance products. The EU framework for insurance expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products.  

The provision of insurance cover and the price at which it is offered is a commercial matter for insurance companies and is based on an assessment of the risks they are willing to accept and adequate provisioning to meet those risks.  These are considered by insurance companies on a case by case basis.  

Insurance Ireland, which represents the insurance industry in Ireland, has informed me that motor insurers use a combination of rating factors in making their individual decisions on whether to offer cover and what terms to apply. Factors include those such as the age of the driver, the type of car, the claims record, driving experience, the number of drivers, how the car is used, etc.  Insurers do not all use the same combination of rating factors, prices vary across the market and consumers are free to choose.  Insurance companies price in accordance with their own past claims experience, for example, where the age of a car is a factor, different insurance companies would use different age thresholds.

Policy in relation to the National Car Test (NCT) lies with the Minister for Transport, Tourism and Sport.  Specifically with regard to the NCT, it was introduced to comply with an EU Roadworthiness Testing Directive aimed at improving road safety and environmental protection. It goes beyond the current Directive's requirements in many areas and the Department of Transport, Tourism and Sport is of the view that the Irish system is one of the best roadworthiness testing regimes in the EU.

While the NCT is one component of having safer vehicles on our roads, every vehicle owner has a personal and legal responsibility to ensure that their vehicles are roadworthy and well maintained. The NCT is an inspection or general 'health check' of what is visible and accessible on the day of the test and includes a check of the roadworthiness of such safety features, amongst others, as lighting, brakes and tyres.

My Department has embarked on a review of policy in the insurance sector which is being undertaken in consultation with the Central Bank and other Departments and Agencies. The objective of the Review is to recommend measures to improve the functioning and regulation of the insurance sector.  

As part of that Review, the Cost of Insurance Working Group is examining the factors contributing to the increasing cost of insurance and identifying what short-term measures can be introduced to help reduce the cost of insurance for consumers and businesses. This work includes an examination as to why there is no direct link between the NCT and the availability of insurance.

Finally, Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance. In the event that a person is unable to obtain a quotation for motor insurance or feels that the premium proposed or the terms are so excessive that it amounts to a refusal to give them motor insurance, they should contact Insurance Ireland, 5 Harbourmaster Place, IFSC, Dublin 1, Telephone +353 1 6761820, quoting the Declined Cases Agreement.