Dáil Éireann - Volume 466 - 13 June, 1996

Written Answers. - Motor Claims.

Mr. E. O'Keeffe Mr. E. O'Keeffe

108. Mr. E. O'Keeffe asked the Minister for Enterprise and Employment if he will give details of the profile of motor claims in respect of young drivers to which the Minister for State at his Department referred to in his reply to Parliamentary Question No. 5 of 16 May 1996. [12435/96]

Minister for Enterprise and Employment (Mr. R. Bruton) Richard Bruton

Minister for Enterprise and Employment (Mr. R. Bruton): The latest data on road accidents prepared by the National Roads Authority shows that, in 1994, the number of motor vehicle accidents of all types increased by 4 per cent over the 1993 level. For young drivers in the 18 to 34 years age brackets the NRA statistics also show that they represented over 38 per cent of the motorists involved in fatal accidents in 1994.

The analysis provided by the sixth report of the Motor Insurance Advisory Board showed that claims frequency declines as age of policyholder increases for all types of cover. The analysis also showed that, in terms of relative claims costs, the 17 to 24 year old policy holders are a worse risk than those aged 25 to 30, who in turn are a worse risk than those aged over 30.

2240

My Department has indicated that the preliminary findings of the draft consultancy report on the economic evaluation of insurance costs in Ireland [2240] provides further evidence of the high cost of claims associated with the young driver. For example, I understand that the analysis demonstrates that the average cost of an insurance claim for a 17 to 24 year old driver is over twice that for a 36 to 40 year old driver and, based on claims estimates, the figures indicate that the younger age group is responsible for over three times the claims costs applicable to the 36 to 40 age group. The relative cost of premiums for the young driver would tend to reflect that overall differential

Dáil Éireann 466 Written Answers. Motor Claims.

Questions

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