Fianna Fáil TD for Dublin Mid-West has said that the Government is failing to establish a properly functioning motor insurance database with the insurance industry to show who is insured and who is not. This database has the potential to significantly reduce the price of insurance premiums.
Since January 2011 the cost of car insurance has rocketed, with business customers needing to insure cars, vans or fleets faring even worse. In 2016, motor insurance costs increased by an annual rate of 11.6%, in 2015 they rose by 30.8%, and in the 12 months to August 2016 there was a jump of 28%.
“Over the past number of years, we have seen extraordinary premium increases and despite the issue generating interest in the media, the Government has been slow to take any action to address the problem.
“I have raised the need to urgently progress the establishment of a properly functioning motor insurance database with the Minister on number of occasions over the past 11 months,” said the Fianna Fáil TD.
“In May 2016 I was informed of the Minister’s plans to form a motor insurance database with the insurance industry to show the insured status of persons, in order to reduce premiums for all motorists. The following September I was assured that the database would be ready for use by early 2017.
“In my most recent Parliamentary Question, the Minister states that the database will now only be ready for testing by the end of September 2017.
“The establishment of this database is critical to enabling An Garda Siochana to better check and enforce motor insurance compliance which will assist in reducing the level of uninsured driving.
“Uninsured drivers cost the industry and insured drivers €50 to €60 million approx per annum, yet the Minister has shown a complete lack of interest on this matter despite it affecting every insured driver nationwide,” he added.
“It has taken the Government too long to wake up to the problem; there is no sense of urgency and this is deeply worrying for the thousands of motorists in which will see their premiums rise again over the coming days, weeks and months.
“The Government is simply not giving this crisis the attention it needs so that the rip-off culture which has perpetrated the insurance industry over the last few years is effectively tackled”.