O’Dea will not back EU car insurance proposals

JUNIOR Justice Minister Willie O’Dea said he would not back controversial European Commission proposals that men and women should pay the same car insurance premiums.

As reported in the Irish Examiner last week, the Commission proposal would see women's car insurance premiums rising by up to €750.

However, Mr O'Dea, who has direct responsibility during Ireland's presidency of the EU for securing agreement from all member states for the proposal, said he personally would not be pushing for the move because the majority of countries do not support it.

Mr O'Dea said his sole role was to act as "referee" between the European Parliament, Commission and Council of Europe to secure some agreement on this new proposal. But he didn't think the proposal would be passed by all states.

"I will not personally push for it if there is no agreement between all member states this looks very difficult at the moment," Mr O'Dea added.

The Commission proposal is based on a desire to ban sex discrimination in the industry. At the moment women pay lower premiums because actuarial evidence shows they are less of a risk. The commission proposal has the backing of the majority of the European Parliament members. They backed the new 'gender neutrality' proposal because they say the current system discriminates against men. The MEPS want the insurance companies to stop using statistics such as driving records and life expectancy when giving quotes and give men and women the same treatment.

But Mr O'Dea was not confident yesterday that the EU Council of Justice Ministers will back the proposal next June because only Sweden has so far come out in favour of it.

"All other countries have expressed grave concerns about it," Mr O'Dea said.

Today Mr O'Dea will meet a delegation from the Irish Insurance Federation (IIF). They are totally opposed to the move to bring in "gender neutrality" because they say it will not benefit men and will increase women's premiums.

A survey carried out by the Association of British Insurers showed that if this directive was brought into the UK it would increase the premiums paid by women by at least stg£500. The IIF believe the move would have the same impact here and raise the premiums for women by €750.

Initially, the directive might lead to an increase in women's car insurance premiums and a drop in those paid by men, said IIF regulation and planning manager Paul McDonnell.

"But it would also attract more risky male drivers and the industry would compensate by increasing premiums and both men and women would suffer," Mr McDonnell added.

The IIF will be telling Mr O'Dea today that Ireland should oppose the proposed new Commission proposal for these reasons.