Catherine Murphy (Kildare North, Social Democrats)
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74. To ask the Minister for Finance in the context of insurance reform if he will outline the steps that he has taken to ensure that persons that make a claim in respect of their stolen motor vehicle receive market value equivalent payments to cover their loss rather than the estimated value provided by the policy holder; and if his attention has been drawn to instances in which persons are at a loss due to the inflationary impact on the second-hand motor vehicle trade. [56931/22]

Paschal Donohoe (Dublin Central, Fine Gael)
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At the outset, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive).

Ultimately, the conditions and factors that determine what a motor insurance policyholder will be entitled to claim from their insurance provider in the event an insured vehicle is stolen will be set out in the terms of the insurance policy contract. This is not a matter that I can get involved in, as contracts will differ between firms and it is the responsibility of a policyholder to familiarise themselves with these terms at the time of purchase.

My officials consulted Insurance Ireland on this matter and Insurance Ireland stated that it is difficult to comment on individual examples. Insurers have to comply with their obligations under the Consumer Protection Code (CPC). Point 7.15 of the CPC states “A regulated entity must ensure that any claim settlement offer made to a claimant is fair, taking into account all relevant factors, and represents the regulated entities best estimate of the claimants reasonable entitlement under the policy.” Insurers are obliged to process any claim in an efficient manner and if the policyholder is not happy with either the processing or outcome of a claim they can make a complaint following the established insurer complaints procedures and escalate to Financial Services and Pensions Ombudsman (FPSO) if necessary.

When considering claims for the total loss of a vehicle, insurers adhere to the principle of indemnity, whereby a person who has suffered a loss is restored, as far as possible, to the same financial position that he/she was in immediately prior to the loss, subject to any contractual limitations i.e. it is not possible to make a profit from an insurance policy.

It may be useful for the Deputy to know that Insurance Ireland operates a free Insurance Information Service for those who have queries, complaints or difficulties in relation to obtaining insurance cover, which can be accessed at feedback@insuranceireland.eu. Where somebody feels they have been treated unfairly by a particular insurance provider, 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 that 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.