Jackie Cahill (Tipperary, Fianna Fail)
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120. To ask the Minister for Finance if he will explore the possibility of consumers accessing motor insurance from another well-regulated EU member state; the potential pitfalls for a consumer accessing insurance from another EU member state; and if he will make a statement on the matter. [37217/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset, the Deputy should note that the EU regulatory framework for insurance already allows for the freedom to provide services from one Member State into another throughout the EU. This is a key principle 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 Suhanovswhere 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, both in legal terms and commercial terms, which would require a solution at EU level. It would also require a willingness by industry to provide insurance in other markets that they may not be familiar with. In recognition of this, the Cost of Insurance Working Group 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 EU fora.