Michael McGrath (Cork South Central, Fianna Fail)
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65. To ask the Minister for Finance the status of the implementation of the motor insurance compensation framework announced by his Department in July 2016. [9992/17]

Michael Noonan (Limerick City, Fine Gael)
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The Report of the Review of the Framework for Motor Insurance Compensation in Ireland was published on 22 July. As you are aware, this review was carried out jointly by the Department of Finance and the Department of Transport, Tourism and Sport and was approved by Government on 19 July.  Since the publication of the report, work has commenced on the implementation of its recommendations, including amendments to the Insurance Acts.  The necessary consultations with various stakeholders, including industry are ongoing.  It is expected that a legislative proposal will be brought to Government for approval in the coming months.

Some of the key recommendations contained in the report are:

- That coverage of the Insurance Compensation Fund will be extended to include third party motor insurance claims in the event of a liquidation of an insurer. The level of cover from the Insurance Compensation Fund for third party motor insurance claims will be increased from 65% to 100% in line with that currently provided by the Motor Insurers' Bureau of Ireland.

- The increased coverage of the Insurance Compensation Fund will be funded by a direct contribution to the Insurance Compensation Fund from the motor insurance industry. While the Review   indicated that this would come via the Motor Insurers' Bureau of Ireland, to the value of 35% of the third party motor insurance claims, further discussions are ongoing with industry about options for alternative funding arrangements which would provide greater  predictability about their financial exposure.

Additionally, the recommendation that the provisions contained in section 78A of the Road Traffic Act 1961, requiring insurers to supply details to the Minister for Transport, Tourism and Sport, be amended to provide greater clarity on what is meant by the term "details", was implemented by section 30 of the Road Traffic Act 2016.  This Act has yet to be commenced.

This report when fully implemented will provide greater certainty in relation to the operation of the insurance compensation framework and it should ensure speedier payments and a simplification of the claims procedure.

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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66. To ask the Minister for Finance his plans to deal with discriminatory practices by motor insurance companies against particular categories of drivers in terms of the setting of premiums; and if he will make a statement on the matter. [10036/17]

Richard Boyd Barrett (Dún Laoghaire, People Before Profit Alliance)
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71. To ask the Minister for Finance his plans to deal with discriminatory practices by motor insurance companies against young persons, elderly persons, taxi drivers and those with older cars in terms of the setting of premiums; and if he will make a statement on the matter. [10037/17]

Michael Noonan (Limerick City, Fine Gael)
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I propose to take Questions Nos. 66 and 71 together.

It is important to note that neither I nor the Central Bank of Ireland can direct insurers to provide cover to a particular category of drivers at a particular price as this is a matter of a commercial nature and would be contrary to EU rules.  

In providing motor insurance, insurers adopt a risk based approach to determining premiums. In simple terms, they look at an application and make a determination of what the likelihood of a claim is and price accordingly. Their previous claims history will heavily influence their decisions in this area. Consequently, if a company has had a significant level of claims from a particular age group, then this will be reflected in how they price such a group of people in the future.

Amongst the risk factors insurers look at are the age of the driver, the age of the car and how the car is used, as well as the location of risk, driving history, vehicle details (e.g. engine size), medical conditions, etc. Using these factors, some people will be priced at higher levels because they are considered to represent higher risks. I do not believe that this can be described  as a discriminatory practice as it simply reflects the nature of how insurance operates.

In relation to taxi drivers, for instance, their time spent on the road makes them a much higher risk for an insurance company compared with a person who drives a short distance to work every day. This higher risk is also likely to be reflected in an insurer's claims experience, though obviously this will differ from company to company.

However, I do accept that it is possible for the State to play a role in helping to stabilise the market and deal with factors contributing to the cost of insurance. Consequently, I established the Cost of Insurance Working Group. Its  Report was approved by Cabinet on January 10 2017, and subsequently published. It contains 33 recommendations and 71 actions which are detailed in an action plan contained in the Report with agreed timelines for implementation. Work on implementing these recommendations is under way.

While there is no single simple solution to effect a reduction in the cost of insurance, when taken cumulatively, the implementation of these actions  can deliver fairer premiums for consumers including young persons, older persons, taxi drivers and those driving older vehicles without unnecessary delay.