Róisín Shortall (Dublin North West, Social Democrats)
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135. To ask the Minister for Finance the options open to persons that wish to purchase motor insurance in another EU state to avail of lower premiums for a vehicle registered and based here with regard to the free movement of goods and services across the European Union; and if he will make a statement on the matter. [15385/17]

Michael Noonan (Limerick City, Fine Gael)
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The issue  of persons being able to purchase motor insurance in another EU Member  to avail of lower premiums for a vehicle registered and based in Ireland was considered by the Cost of Insurance Working Group in its recent Report. Its conclusion was  that it is not possible under the current legislative framework to provide for individuals to source motor insurance for Irish registered vehicles from insurers in other Member States.

In coming to this conclusion, it examined the existing legal and regulatory framework for the provision of insurance in the European Union (EU), as well as Irish law.  The EU framework allows for the freedom to provide services from one Member State into another throughout the Union. This is a key principle of the European Union and is availed of by a number of insurance firms established in Ireland in order to conduct business into other EU Member States, and also by companies authorised elsewhere conducting business into the Irish market. This can be done either through:

- establishing a branch operation in the host country and thus conducting business on a 'freedom of establishment' (FOE) basis; or

- writing business from the home country (i.e. where authorised) into the host country on a 'freedom of services' (FOS) basis.

In both situations for companies wishing to do business in Ireland,  there is a requirement to become a member of the national bureau ( Motor Insurers' Bureau of Ireland (MIBI)) under Section 78 of the Road Traffic Act. This is an important requirement as the MIBI is the body in Ireland tasked with meeting the EU requirement of compensating victims of accidents caused by uninsured and unidentified vehicles.  This position has been upheld in the case of DPP v Lepina and Suhanovs where one of the conclusions was that a vehicle registered  in the State must be insured by a vehicle  insurer who is a member of the national bureau (MIBI).

In summary, therefore a vehicle registered and based in Ireland can legally only take out insurance with a company who is a member of MIBI which means that by definition they cannot purchase motor insurance in another Member State where such companies will be members only of their own national bureau.

This is a complex issue which would require a solution at EU level.  The Working Group therefore recommended that my Department support efforts and raise awareness of the need to improve cross-border motor insurance provision at the European level.  This work is ongoing and my officials continue to monitor the issue and raise it in the relevant forums.