asked the Minister for Trade, Commerce and Tourism if he is aware of the discrimination against people under 25 years in relation to motor insurance; and if he will make a statement on the matter.

I am not clear what the Deputy means by "discrimination" but I assume that what he has in mind is premium costs, rather than availability of cover.

It has long been the practice of motor insurance companies to apply loadings in the case of premiums charged to young drivers because underwriting experience shows that claims are heavier both as to frequency and amount than in the case of other policy holders.

The Prices Advisory Committee on Motor Insurance, which reported to me earlier this year, recommended that, while insurers should be free to charge higher or lower premiums in respect of those categories of drivers or vehicles with better or worse than average claims experience, those charges should not exceed the amount shown to be statistically justified.

The committee also referred to the work of the Motor Premiums Advisory Committee which has been engaged in an analysis over a number of years of the appropriateness of the loading factors applied by motor insurers including those applied to young drivers. That committee's preliminary findings have indicated that the loadings applied to young drivers broadly reflected the risk involved.

Is the Minister aware that it is becoming very difficult for young people to get motor insurance cover because premiums are too high? Is the Minister concerned that even people under 30 years of age being asked to pay very high premiums to get insurance cover? Is the Minister in a position to give hope to such people that the situation will improve?

As long as it is proved by statistics that certain ages and categories are high risks I am afraid the situation will continue to be as it is. I am sure the Deputy will appreciate that it is important that insurance companies are prudent in their underwriting. It is not like another business where cut-price activities which would be beneficial to the consumer would be welcome. In the insurance business one must be extremely prudent in the interests of the insured. The Prices Advisory Committee in making a recommendation earlier this year in regard to motor insurance recognised that there was statistical evidence to prove that, unfortunately, in that age category not only were there more accidents but the nature of the accidents were more serious with resulting higher awards.

Is the Minister aware of at least one instance where a premium of £2,100 was sought for a young person? Indeed, in that instance the amount sought was greater than the value of the car being insured. The difficulties young people have in obtaining an acceptable premium contributes to the number who are driving around uninsured on our roads.

I am not aware of the case referred to by the Deputy. The Department when dealing with such matters do not allow in excess of 150 per cent, that being justified on the basis of the statistical evidence.

It is felt that the situation in which one company in the motor insurance field had to take on most of the under 25 age group had a considerable impact on the final situation in regard to that company which the Minister dealt with earlier. Will the Minister consider making it mandatory on the 26 motor insurers that they provide insurance for the under-25s in accordance with their general licence?

I do not accept that the main factor in the unfortunate situation of one insurance company was the one mentioned by the Deputy. There were other major factors involved in that unfortunate episode.

It was a contributory factor.

With regard to the suggestion that I should make it obligatory on insurance companies to insure people under 25——

Pro rata to the number of each block they hold.

—— I do not think it would be possible or even wise. However, I will look into the matter.