Michael McGrath (Cork South Central, Fianna Fail)
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159. To ask the Minister for Finance if insurance companies are permitted to remove a no claims bonus from a person's motor insurance policy in situations in which an incident has been reported by the policy holder but no claim has been made against them; and if he will make a statement on the matter. [4224/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset the Deputy should note that there is no statutory basis underpinning how individual insurers operate their No Claims Bonus system. This is a commercial matter for such companies and the level of the bonus varies between them but may be as high as a 70% discount. In addition, I understand that insurers have different approaches and policies where an incident has been reported by the policy holder but no claim has been made against them.

While neither I nor the Central Bank can interfere in the provision or pricing of insurance products, as these matters are of a commercial nature, and are determined by insurers based on the risks they are willing to accept, my officials contacted Insurance Ireland in relation to the specific issue outlined in the Deputy’s question and they responded as follows:

“If a claim is reported to the insurance provider and the issue of liability is pending and overlapping the renewal date, the No Claims Bonus Discount will be removed or partially removed, subject to the discount scale noted in the terms and conditions of the insurance contract.”  

It may be of interest to you that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance.  Insurance Ireland can be contacted at feedback@insuranceireland.euor 01-6761914.