Insurance companies come under fire from Laois TD
“When we joined the EU Single Market, we were told there would be a lot of reforms and we would benefit from all of it. It does not seem to have worked out in the insurance industry,” said the TD
DESPITE many promises about improvements to the insurance industry, Deputy Brian Stanley said very little has happened for customers.
The Laois Independent Republican TD raised the matter in the Dáil recently when he said: “The costs of motor, business and home insurance are up. Insurance costs for community and sports groups are sky high. Health insurance is out of reach and causing significant problems, especially for people over the age of 60. The cost of motor insurance is increasing at a rate double the EU average. Small businesses tell me the whole time they are paying astronomical insurance costs.”
He said: “Areas where there was flooded, such as Mountmellick, but where flood relief schemes are not yet in place, are simply being refused insurance coverage in a lot of cases. Voluntary groups and sports clubs are under enormous pressure. It is a huge undertaking for volunteer organisations to have to come up with the money for these costs every year on top of all the other overheads, such as payments to Uisce Éireann, electricity costs and everything else.”
The Portlaoise based TD said: “The worst aspect, though, is the cost of private health insurance. This is especially the case for those aged 60 and over. They have no choice in the current circumstances, because of the gaps and weaknesses in our public health system, but to take out private insurance. Some of these people are just on a state pension. I have come across people who are just on the state pension and are paying €2,000 or more a year for their basic cover health insurance. This is over €40 a week out of their pension of €260 or €270 a week. It is substantial. Some of these people paid 60% tax rates back in the 1980s.”
“When we joined the EU Single Market”, Deputy Stanley said, “we were told there would be a lot of reforms and we would benefit from all of it. It does not seem to have worked out in the insurance industry. We are completely out of sync with the rest of Europe in terms of our motor, business and other insurance costs.
“Reforms have happened, and they were welcomed. More are required, though, because business as usual is not good enough any longer. It is not an option. Insurance companies are highly profitable because, on the one hand, the cost of claims has reduced substantially, while, on the other hand, the cost of insurance has gone up.”
He said: “The powers of the Competition Authority need to be strengthened. Legal fees need to be reduced. We have been promised a number of times that this would happen. The Government must ensure there is transparent oversight of insurance companies not passing on savings. We also need proper oversight of the personal injury guidelines. We must ensure there is proper monitoring in that area. Action is now required from this Fianna Fáil and Fine Gael Government because we cannot continue with the high costs we have on small businesses, on householders and on motorists.
“More than 12,000 people commute out of Laois every day. On top of that, there are people in the county living in outlying areas such as Rathdowney, Borris-in-Ossory, Ballaghmore and Emo who have to travel into work by car, not having any other option. They are paying astronomical prices.
Loyal customers of insurance companies should not be taken for granted.”
