asked the Minister for Industry, Trade, Commerce and Tourism the proposals he intends to implement in order to achieve a cheaper form of motor insurance, particularly for persons under 25 who are unfairly penalised at present; and if he will make a statement on the matter.

7.

asked the Minister for Industry, Trade, Commerce and Tourism the steps he proposes taking to deal with the high cost of motor insurance for young drivers.

I propose to take Questions Nos. 6 and 7 together.

Motor insurance for young drivers is relatively more expensive than that for older drivers because of the accepted practice of applying loadings, to reflect the additional risk which they represent, to the insurance premiums charged to young drivers. In addition, younger drivers are less likely to be in a position to benefit from no claim bonuses which older drivers will have earned.

The necessity to charge loadings arises by virtue of the higher incidence of accidents and claims involving young drivers relative to their older counterparts. The motor premiums advisory committee, which examined accident and other statistics, found that the loadings charged to younger drivers generally reflected the additional risk which they represent.

The committee of inquiry into the cost of motor insurance which reported in January 1983 considered it entirely legitimate that groups shown to have higher claims experience should pay higher premiums. The committee made various recommendations in relation to the cost of motor insurance generally, a number of which have already been implemented.

The representative board, which will be established very shortly, will advise the Minister on matters related to premium rates, loadings and the availability of cover.

If the Deputies are aware of any individual case of excessive rates being charged to young drivers, I will be glad to have them investigated by my Department.

Does the Minister accept that in some cases young people are being asked to pay prohibitive rates? I know a person who was asked to pay £1,000 insurance for a £3,000 car. Can the Minister hold out any hope that a statutory or some other instrument can be used to ensure that these people, many of whom have had trouble free motoring experience, will be able to obtain insurance at a lower rate?

We cannot directly link a premium to the value of a car because it is possible that a car valued at £2,000 may be unsafe or may not be roadworthy. All insurance companies apply loadings to young drivers for a number of reasons which I have already given in numerous replies in this House, but mostly because the accident rate is substantially higher than in the case of older drivers, and because they do not have experience, they have not earned their no claims bonus. I have examined all the price applications as closely as possible to try to ensure that the premiums charged are reasonable and I have asked the insurance industry in general to take on young drivers. I am satisfied that, with a few exceptions, this is being done at present.

Will the Minister agree that the reason the number of uninsured motorists is so high is that young drivers find it so expensive to get their first insurance and, consequently, are prepared to take the risk of going on the road without any insurance? Will he indicate when he proposes to comply with the commitment given in this House two years ago by Deputy Barry that his party were going to introduce a comprehensive new policy dealing with insurance for young people under 25 years?

That is a separate question.

I am as concerned as the Deputy about uninsured drivers. I am saying realistically that the price of insurance for young people reflects the higher risk they carry. The experience of insurance companies who deal with the motorists has been a most unhappy one in recent years. I have an obligation to ensure that these companies continue to have a pricing structure that is competitive but they must also be allowed to continue in business. I must balance both considerations as the Deputy who was a former Minister in charge of this Department knows very well.

Will the Minister indicate from the records of the Department the number of young motorists under 25 years who are currently insured and the number who would like to get insurance but who cannot get it at a reasonable cost? Will he indicate to the House the kind of money the insurance companies have to carry because of the extra liability of young drivers on their books?

I do not have the number of drivers under 25 years who are insured. I wish to tell the Deputy I am satisfied that companies are taking on young drivers and that there is no widespread problem in that regard. However, I accept there is a problem with regard to pricing.

How does the Minister know there is no problem if he has not got the number? How many young drivers under 25 years are insured?

If young drivers were complaining to my Department I would be aware of it. I know there are problems for them primarily because of the price of insurance but I have been advised in at least two independent reports that the premium rates charged to young drivers are justified. I am not defending the companies but I have an obligation to see that there is a fair balance between the premiums charged and making sure that the companies continue in business.

Is the Minister of State aware that one insurance company is promoting its business by stating the number of people who will be seeking insurance at the end of each year? If that company can indicate the number of policyholders who will be renewing their insurance, surely the Department can give a breakdown of the age groups accommodated? I do not believe the Minister has not got those figures.

That is a separate question.

They were in the Department when I was there. I ask the Minister to send me at his convenience the information I have requested.

I will be happy to communicate with the Deputy.