No.

Issues Addressed

Recommendation

Status

Progress to Date

Future Plans/Target Date for Implementation

1

Further road safety improvements

That priority be assigned to achieving the objectives set out in the Government’s Strategy for Road Safety for a wide range of reasons, which extend far beyond the cost of insurance.

2

Primary target of new Road Safety Strategy is to realise a 25% reduction in road collision fatalities by end of 2006 over the average number of fatalities in the 1998-2003 period.

Revised speed limit structure expressed in metric values has been implemented.

The setting up of a traffic corps was announced in 2004. Work is progressing on a system of penalty points and fixed charges.

2

Provisional Licences, Road Safety Driver Education in schools

That the current system of unsupervised driving by provisional licence holders be reviewed and consideration be given to the introduction of a road safety and driver education syllabus in schools.

2

The exception to the accompaniment rule which applies to holders of second provisional licences in respect of category B vehicles (cars) is being reviewed in the context of a package of measures designed to reduce long-term reliance on provisional licences. All other provisional licence holders other than drivers of motor cycles and work vehicles must be accompanied by a qualified driver at all times when driving in a public place.

The requirement to have your licence with you while you are driving or acting as an accompanying driver was introduced on 1 January 2003.

The report commissioned by the National Council for Curriculum Assessment on the introduction of a road safety and driver education syllabus in schools has been completed and is with the Minister for Education.

34

Insuring the Vehicle rather than the use of the Vehicle.

Study needed to see if this would reduce premiums.

That detailed consideration be given to amending the Road Traffic Acts to require insurance on the vehicle, as in mainland Europe, rather than allowing claims to be declined on the basis of the driver’s use but with appropriate measures to address the rights of insurers where premiums have been underpaid.

4

Implementation would involve fundamental changes in the arrangements for motor insurance in Ireland. The complex risk assessment, civil liability issues and potential costs and advantages of implementation will have to be evaluated before coming to a decision. A UK preliminary study on ‘Uninsured Driving in the United Kingdom’, published in June 2004, has recommended that insurance of the individual driver rather than insurance of the vehicle should continue to be the basis for third-party liability cover in the UK.

35

Fourth EU directive on Harmonisation.

Irish citizens’ right to sue the insurer directly.

That, when the Fourth EU Directive on Harmonisation of Motor Insurance is incorporated into national law in 2003, Irish citizens are extended rights equal to those of visiting EU citizens to sue the vehicle insurer directly for compensation entitlements arising from motor accidents occurring in Ireland.

3

Direct right of action against Irish insurers provided for in case of accidents to which the Fourth Motor Insurance Directive applies. S.I. 651 of 2003 transposed the provisions of the Fourth Motor Insurance Directive into Irish Law.

S.I. 651 of 2003 signed by Minister on 27 November 2003. An extension of this provision to all traffic accidents will be considered in the context of new primary legislation, unless adoption of the proposed 5th Directive on Motor Insurance allows for earlier implementation.

36

Motor Insurance Bureau of Ireland agreement to be amended, to ensure victims of uninsured/defectively insured vehicles get equally favourable treatment.

That the agreement between the Motor Insurers Bureau of Ireland and the Minister for the Environment & Local Government be amended to clearly ensure that victims of uninsured or defectively insured vehicles can pursue their claims on no less favourable terms than apply to insured cases, as consistent with the jurisprudence of the European Court of Justice, lest they be doubly disadvantaged by involvement in such occurrences.

3

A revised Agreement, primarily to take account of cost reduction, was signed by the Minister and the MIBI on 31 March 2004. More detailed review to follow to reflect planned developments in EU Law.

Discussions with the MIBI are ongoing.

37

Road Traffic Act to be amended, in line with EU Directives on harmonisation, to protect victims of defectively insured vehicles; better clarification on insurance certs.

That the Road Traffic Acts, and other relevant legislation, be amended to fully adopt the Articles of the various EU Directives on harmonisation of compulsory motor insurance so as to clearly uphold the rights of victims under European law in accidents involving uninsured, untraced, defectively insured or allegedly defectively insured vehicles or drivers and that the prescribed content of insurance certificates be reviewed for clarity of communication with the addition of wording highlighting that the rights of Third Parties are not affected by cover limitations in the policy document.

5

The EU commission is preparing consolidated legislation on motor insurance, and certain aspects of this recommendation may be most effectively dealt with in that framework.

61

Access of insurers to National Driver File, after introduction of penalty points.

That, following the introduction of the penalty points system, and subject to the provisions of data protection legislation, insurers should be permitted access to relevant information on the national driver file under provisions similar to Section 28 of the Road Traffic Act, 1994.

3

The National Driver File on which penalty points are recorded is held under section 60 of the Finance Act, 1993 by the Minister for the Environment, Heritage and Local Government, who must make regulations to allow access to the records to persons other than those specified in that section.

A database is currently being considered which will provide up-to-date information on drivers and vehicles and also insurance particulars, subject to data protection issues.

3

Higher Fines, impounding of vehicles, earmarking of fines for Motor Insurance Bureau of Ireland

That the sanctions for flagrant breach of compulsory insurance obligations should be fines at a level more consistent with premium charges and should provide for vehicle confiscation, as applies to non-payment of road tax, with proceeds being assigned to the Motor Insurers Bureau of Ireland, who are responsible for claims from victims of uninsured accidents.

2

Road Traffic Act, 2002 increased fines, but level imposed is up to the Judiciary. Power to impound vehicles already exists. Discussions with the Gardaí in progress about activating secondary legislation. The parent department needs to seek Department of Finance approval for the earmarking of fines.

The Garda authorities have initiated discussions with the Dept of Justice, Equality and Law Reform in regard to resourcing the transport and storage of vehicles.

40

Improved access to justice.

Independent mechanism for assessing disputes on legal costs.

Transparency.

Promotion of competition.

That the current court-based system for assessing legal fees be reviewed as to its cost effectiveness in satisfactorily resolving disputes on litigation costs and that consideration be given to a framework that the public might regard as more independent of the legal establishment and from which more transparent information might be available to litigants on the allowable levels of fees.

2

The Minister for Justice, Equality and Law Reform has announced the establishment of a Working Group to identify ways of reducing legal costs. Part of the terms of reference of the group is to examine the systems and arrangements in place relating to the taxation of costs. It is expected that the report of the group will be available in the near future.

49

Restoration of constitutional balance when wrongly sued people have been vindicated.

That awards on costs to defendants are made automatic upon successful defences, either on liability or on the extent of loss, to restore equity between litigants while acknowledging that methods of payment enforcement will always be a matter for judicial discretion under Examination Orders.

3

The question of an automatic award of costs where a defendant is successful was considered in the course of the preparation of the Civil Liability and Courts Act. However, it was considered that legal issues could arise in implementing a proposal that would remove discretion from the courts in relation to the award of costs.

50

Enhancement of justice and protection for victims. Avoidance of need for victims to rely on the state.

That the system of lump sum compensation payments be reviewed on the basis that the long-term needs of the seriously injured may be better served by guaranteed annual payments.

4

The Minister will consider these recommendations further in conjunction with the recommendations of the Law Reform Commission in their report on periodic payments and structured settlements.

51

Improved compensation delivery for victims.

That a system be introduced to facilitate pre-trial interim payments to the seriously injured in cases where liability is not a substantial issue but there is a financial need to replace lost earnings or seek medical treatment.

4

See R. 50.

52

Promotion of enhanced quality of justice.

That a system be introduced to facilitate the award of provisional damages where there is a substantial risk that the injured party’s medical condition may deteriorate in the future.

4

See R. 50.

54

Promotion of enhanced quality of justice. Better consistency between judgments. Speedier disposal of non-complex cases. Reduction in legal costs.

A system of case management to be adopted by the Courts, with a panel of judges specialising in injury claims, to secure early hearings of non-complex cases which could be disposed of by a short trial and that the Small Claims Court system be extended to deal with property claims up to €5,000 arising from motor accidents.

3

The Committee on Court Practice and Procedure in its 29th Interim Report made a number of observations in relation to Case Management in personal injuries actions. These observations, and the MIAB recommendations, are under consideration in the Department and the Courts Service.

29

Transparency.

Public Information.

Informing Policy.

That the format and content, as published in the ‘Blue Book’, of insurers’ annual Statutory Returns be amended to show clearly the accrual for the current accident year separately from movements in prior years’ reserves.

2

Motor Vehicle Liability claims analysis information contained in Form 8 of the Statutory Insurance Returns was included in the Insurance Statistical Review 2003, published in October 2004. This showed the accrual for the current accident year separately from movements in prior years’ reserves in relation to motor insurance for the main players in the Irish motor insurance market.

30

Linked to Recommendation No. 29.

That all relevant information in Statutory Returns be shown separately for private car, commercial motor, motor cycle and other main classes of motor business by coverage types.

2

Following discussions with the Irish Insurance Federation (IIF), information was included in the Insurance Statistical Review 2003, indicating the breakdown currently available in relation to private motor and commercial motor business.

31

Linked to Recommendation No. 29.

That the format and content of Statutory Returns be reviewed in line with practice elsewhere in Europe to improve the quality and quantity of public information.

2

The ‘Best Practice’ review to compare our supervisory regime with those of a number of other EEA Insurance Regulatory regimes, specifically the Netherlands, Norway, Sweden and the UK, has been completed. The review included an examination of the nature and frequency of information received by other regulators for prudential purposes. The format and content of the current financial returns are currently being examined with a view to revised formats being put in place during 2005 following consultation with the Irish insurance industry.

58

Level of premium charges.

Adequate funding for enforcement issues.

That the stamp duty (formerly levy) on motor insurance, if not abolished as repeatedly recommended by the Board, should be ring-fenced for related matters, which include road safety initiatives, such as funding of the National Safety Council and the maintenance of a Policyholders Protection Fund to safeguard claimants’ interests in the event of insolvency of an insurer regulated in Ireland.

4

While specific taxes are reviewed as part of the annual budget cycle, the Minister has not to date been disposed to forego the considerable revenues that accrue from the stamp duty on motor insurance. The Minister does not in general favour the earmarking of tax revenues for specific purposes.

5

Transparency.

Accountability.

Consumer protection.

Gathering a consistent set of data over an adequate period of time to assess equitable charging.

That central gathering of statistics on motor insurance premium and claims costs by driver profile be formalised by IFSRA, including monitoring by the new insurance regulator of data quality, to ensure that reliable information is available to inform public policy in future years and to improve market intelligence as provided for in EU Regulation No. 3932/92.

2

Partially implemented

The Financial Regulator, through the Central Bank Statistics Department, is currently carrying out the MIAB role of analysing insurers’ raw data on motor insurance premium and claim costs, with the assistance of the MIAB statistician. Data as captured at end 2002 was received from the Irish Insurance Federation in February 2004. Analysis of the first data set received by the Financial Regulator in 2004 will be published during 2005. The data as captured at end 2003 was submitted at end December 2004.

6

Discriminatory action.

Linked to Recommendation No. 5.

That IFSRA supply regular market wide statistics on motor premium differentials to the Equality Authority to assist in assessing insurers’ compliance with the Equal Status Act, 2000 and subsequently its proposed extension.

3

In progress

The Equality Authority is due to revert to the Financial Regulator on how best to implement this Recommendation. It is anticipated that the information published on the analysis of motor insurance premiums may be of interest to the Equality Authority in this regard.

45

Claims costs reduction.

Equal status as regards Irish and other EU nationals.

That the Health (Amendment) Act, 1986 be reviewed to the extent that it represents a discriminatory charge levied only on those involved in motor accidents at multiples of the rate charged to providers of health insurance and inconsistent with rates charged to visiting EU nationals in a manner that may offend the Equal Status Act, 2000 given that victims of motor accidents represent less than 1% of users of hospital services.

4

Further discussions to be held with the Dept of Health and Children

41

Promotion of competition.

Consumer protection.

That the Competition Authority’s investigations of the professions should assign priority to the fees which impact on the cost of motor insurance, given its compulsory nature and the recent high inflation rate recorded for insurance, and that, on completion of those investigations, their findings be taken into account in a review of the effectiveness of self-regulation by the legal profession.

2

The Competition Authority published a report containing final and preliminary recommendations in February 2005.

The target date for the final report is the end of 2005.