Patricia Ryan (Kildare South, Sinn Fein)
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38. To ask the Minister for Finance if his attention has been drawn to the fact that insurance companies are charging double excess on claims, a policy excess and a voluntary excess, without informing customers in advance; and if he will make a statement on the matter. [10610/21]

Paschal Donohoe (Dublin Central, Fine Gael)
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I understand that the Deputy’s question relates to motor insurance. At the outset, it should be noted that neither I, nor the Central Bank of Ireland, can direct the pricing or policy conditions attached to insurance products, as this is a commercial matter. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so.

The Central Bank’s Consumer Protection Code requires insurers to act honestly, fairly and professionally in the best interests of their customers and the integrity of the market. The Central Bank also requires insurers to make full disclosure of all relevant material information, including all charges, in a way that seeks to inform the customer and not to recklessly, negligently or deliberately mislead a customer as to the real or perceived advantages or disadvantages of any product or service. Furthermore, the Central Bank considers that information regarding an insurance policy excess is relevant, material information and as such that insurers are obliged to disclose this to prospective policyholders.

I also understand that a policyholder may choose to pay a voluntary excess on top of an existing policy excess, and that choosing this option may lower the overall premium.

In a situation where a customer feels they have been treated unfairly by a particular insurance provider in this regard, they have the option of making a complaint to the Financial Services and Pensions Ombudsman (FSPO). The FSPO acts as an independent arbiter of disputes which consumers may have with their insurance company or other financial service provider. The FSPO can be contacted either by email at info@fspo.ie or by telephone at 01-567-7000.