Car insurance prices to fall after release of report

Motor insurance costs are expected to fall once a report expected to be released next month is acted on, junior finance minister Eoghan Murphy said.

He faced questions from Fianna Fáil finance spokesman Michael McGrath yesterday, who asked: “Is legislation needed? Fundamentally, will it make a difference on the issue of premiums?”

The Department of Finance working group, which Mr Murphy chairs, is examining factors contributing to the rising cost of premiums.

He confirmed legislation would be needed from the report’s 40 recommendations, which would result in consumers understanding how premium prices change. He said an action plan on motor insurance would be initiated after the report is published.

“As recommendations go through, hopefully we will see costs coming down,” he told the Dail. With changes, which may include a public database on charges that already operates in Britain, there would be more transparency in the sector, added Mr Murphy.

Drivers would be able to see how cover increases are “happening year on year.”

Meanwhile, Finance Minister Michael Noonan said Nama saw nothing wrong in being lobbied by a former Fine Gael TD over the sale of lands allegedly connected to him.

AAA/PBP’s Paul Murphy raised the issue about former TD Brian Walshon how he had lobbied Nama on behalf of business partners without making any disclosure. Mr Murphy said he had a letter on headed Dáil paper from Mr Walsh to Nama with questions about property which went on to be sold to developer Liam Mulryan.

“He doesn’t mention the fact that he owned at least six properties with Mr Mulryan,” said Mr Murphy.

Mr Noonan said the agency had received hundreds of representations by politicians about properties.