Robert Troy (Longford-Westmeath, Fianna Fail)
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119. To ask the Minister for Finance the reason vehicles which are over ten years of age and pass the national car test can be refused insurance quotes from a large percentage of providers. [33214/17]

Paschal Donohoe (Dublin Central, 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 can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept.  This position is reinforced by the EU framework for insurance which 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.  Consequently, I am not in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of drivers or vehicles. 

Policy in relation to the NCT lies with the Minister for Transport, Tourism and Sport.  The NCT was introduced to comply with an EU Roadworthiness Testing Directive aimed at improving road safety and environmental protection. 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.

The NCT is a minimum requirement of roadworthiness and is therefore not the only rating factor taken into account in the provision of motor insurance. Insurers will generally require that a car has a valid NCT in order to be covered.  However, in making their individual decisions on whether to offer cover and what terms to apply, they will also use a combination of other rating factors, including the age of the driver, the type and age of car, the claims record and driving experience of the driver, the number of drivers, how the car is used, etc.  My understanding is that insurers do not all use the same combination of rating factors, and as a result prices and availability of cover varies across the market. In addition, insurance companies will price in accordance with their own past claims experience, meaning that in relation to the age of a car and the availability of cover, different insurance companies will use different age thresholds.  

The Deputy should note that, according to the terms of the Declined Cases Agreement, the insurance market will not refuse to provide 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.  Insurance Ireland can be contacted in this regard at declined@insuranceireland.eu or 01-6761914 or 01-6761820.