Dáil & Seanad Questions June'2000 - Motor Insurance 47. Ms Clune asked the Tánaiste and Minister for Enterprise, Trade and Employment if her attention has been drawn to the very high motor insurance premia that are being quoted to young drivers; the steps, if any, she has taken to address the situation; and if she will make a statement on the matter. [16093/00] Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy): The difficulties being experienced by young people in securing motor insurance and the high cost of compulsory insurance cover for young drivers is directly attributable to the adverse claims experience of such drivers as a risk category. A report by Deloitte & Touche which evaluated insurance costs in Ireland found that the average cost of an insurance claim for 17 to 24 year old drivers was twice that for the 36 to 40 age group. The report also noted that motorists in the 17 to 24 age group were responsible for over three and a half times the total average claims costs incurred for motorists in the 36 to 40 age group. EU law prevents me from intervening directly with the insurance companies in the matter of premium levels or in respect of what risks they are prepared to underwrite. Therefore, the primary focus of initiatives aimed at reducing the cost of motor insurance for young drivers must be on reducing the frequency of accidents and the associated cost of claims. The key to this is to create appropriate conditions for improving their standards of driving and their appreciation of road safety. The Motor Insurance Advisory Board, which was re-established by me in 1998, was a major initiative aimed at providing us with information and advice on trends in motor insurance costs and with policy recommendations for addressing those costs. The board, whose expanded membership includes a member representing young drivers' interests, has undertaken an ambitious programme of work and research, particularly regarding the basis of charges to young drivers. A number of initiatives are in place and are being taken to improve driving standards and safety awareness amongst all drivers, including young drivers. The Irish Insurance Federation, in conjunction with the Driving Instructors Register, has introduced a scheme of insurance premium discounts for the young driver on completion of a required number of driving lessons. The National Safety Council, in co-operation with the Garda, continue to promote anti-speeding and anti-drink driving media campaigns, including road safety educational programmes for secondary school students. 68. Mr. Callely asked the Tánaiste and Minister for Enterprise, Trade and Employment if any progress can be made to address the issue of the cost of motor insurance for young drivers; and if she will make a statement on the matter. [16365/00] Minister of State at the Department of Enterprise, Trade and Employment (Mr. Treacy): The high cost of motor insurance for young drivers is directly attributable to adverse claims experience of such drivers as a risk category. EU law prevents me from intervening directly with the insurance companies in the matter of premium levels or in respect of the risks they are prepared to underwrite. It is abundantly clear that the primary focus of initiatives, aimed at reducing the cost of motor insurance for young drivers, must be on reducing the frequency of accidents. There are a number of such initiatives in place. For example, the Irish Insurance Federation, in conjunction with the driving instructors register, has introduced a scheme of insurance premium discounts, for the young driver on completion of a required number of driving lessons. The National Safety Council, in co-operation with the Garda, continue to promote anti-speeding and anti-drink driving media campaigns. My re-establishment of the Motor Insurance Advisory Board is aimed at providing us with information and advice on trends in motor insurance costs and with policy recommendations for addressing those costs. Back to Dáil Questions index