Insurance companies apparently free to charge whatever they want for motor cover

EU prohibits State from adopting rules which require insurance companies to obtain prior insurance pricing approval.

Sligo News File.

The EU bans the State from setting the price for motor and other insurance products, according to the Minister for Finance.

 

Pascal Donohoe said in reply to a written parliamentary question that neither he nor the Central Bank can interfere in the provision or pricing of insurance products, “as these matters are of a commercial nature, and are determined by insurance companies based on an assessment of the risks they are willing to accept.

The position “is reinforced by the EU framework for insurance which expressly prohibits Member States from adopting rules which require insurance companies to obtain prior approval of the pricing or terms and conditions of insurance products. Consequently, I am not in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of drivers or vehicles,” he added.