Charlie McConalogue (Donegal, Fianna Fail)
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268. To ask the Minister for Finance the actions he is taking to address the situation whereby some insurance companies are refusing to insure vehicles over ten years old with a valid NCT certificate or charging high premiums in cases in which insurance is being provided; and if he will make a statement on the matter. [16287/18]

Paschal Donohoe (Dublin Central, Fine Gael)
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I am aware of the concerns raised by the Deputy.  However as Minister for Finance, my role is limited to the development of the legal framework governing financial regulation.  What this means is that 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 and conditions that they should apply in respect of particular categories of drivers or vehicles. 

Notwithstanding the above, however my officials have been engaging with Insurance Ireland in relation to the availability and cost of insurance for older cars. 

The general response has been that while insurers will require that a car has a valid NCT in order to be covered, this is one amongst a number of factors they will consider. 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, which include the age of the vehicle, as well as the type of vehicle, the age of the driver, the relevant claims record and driving experience, the number of drivers, how the car is used, etc.  My understanding is that insurer’s 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 vehicle and the availability of cover, different insurance companies will use different age thresholds.

It should be noted that my Department will continue to engage with Insurance Ireland on this matter.

Finally, if a consumer is unable to secure a quotation on the open market, he or she may be in a position to avail of the Declined Cases Agreement (DCA) process.  Under the terms of the DCA, the insurance market will not refuse to provide insurance to an individual seeking insurance if the person has approached at least three insurers and has not been able to obtain cover from them.  In this regard, there are further details available on the Insurance Ireland website while Insurance Ireland also operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance.  The relevant contact details are: feedback@insuranceireland.eu  or declined@insuranceireland.eu or 01-6761914.