23 June 2016
By Elaine Murphy
Fianna Fáil Spokesperson for Finance, Michael McGrath TD says the government must take urgent action to tackle exorbitant motor insurance costs, following the passing of a Fianna Fáil motion in the Dáil.
Deputy McGrath was speaking in the Dáil during this afternoon’s Leader’s Questions, when he further raised the issue of spiralling motor insurance premiums.
Over the past number of years consumers have been hit with massive hikes in their motor insurance premiums – with the latest CSO figures revealing that the annual rate of increase in motor insurance hit a record 35.5% in May of this year.
The Fianna Fáil motion, which was passed earlier this month, called for the introduction of practical measures such as; the re-establishment of the Motor Insurance Advisory Board on a time limited basis; greater disclosure around policy renewal notifications; action on the settlement of cases and dealing with false and exaggerated claims.
Deputy McGrath commented, “We want to ensure that consumers get a fair deal and have put forward a series of measures, which would reduce these inflated premiums. The passing of this motion was the first step in a process, which will hopefully clamp down on soaring motor insurance premiums, the Government must now take action to tackle motor insurance rip-off.
“The Government must act without delay. In particular, I am calling on the Ministers for Finance and Jobs, Enterprise & Innovation to take the necessary steps to ensure that consumers are protected from these rip-off rates. A credible, transparent system which guarantees a fair deal for personal and business customers must be brought forward”, explained Deputy McGrath.
“While we do not yet have figures for the amount paid out on claims in 2015, the amount paid out in claims in 2014 was 36% less than the amount paid out in 2011. Therefore these figures do not substantiate the assertion by the industry that motor insurance claims are the main reason behind rocketing premiums. This makes it all the more important that the actions set out in a recently agreed Dáil motion on motor insurance, initiated by Fianna Fáil, are implemented by this Government without further delay.
Deputy McGrath concluded, “I took the opportunity during today’s Leaders Questions to pursue the Government to detail what is being done to implement the measures detailed in our motion. Fianna Fáil will continue to hold the government to account on this issue and will be insisting on the full implementation of the motion passed. It is not acceptable for the Government to agree to the passage of a Dáil motion and then do nothing to implement it.”