I welcome the Central Bank (National Claims Information Database) Bill 2018. Transparency is the key identified by the Finance Committee when it examined this issue in detail over the last two years.
I do, however, think the legislative approach taken is weak and hands too much scope to the Central Bank to interpret the will of the Oireachtas.
We have had eight progress reports to date on changes made to the Insurance sector.
When I, and others, quizzed the Minister about the lack of progress on many, many elements of the Cost of Insurance Working Group’s Plan; he told me that I need to look at the database as it was the main element and not to get distracted by other parts that are way behind schedule or have been dropped.
Well, here it is and it could be a lot better. I do have doubts about whether the database the Minister envisions will ever see the light of day given that this legislation is basically an enabling piece of law to allow the Central Bank go ahead and do what it wants.
That is not good enough. When the idea of the database was first mooted, most people would probably imagine it as a database that they, as consumers, could consult to check out the details of insurers. Instead it is an industry-only database held by the Central Bank. It is a very, very limited form of transparency.
At Second stage in the Dáil, my party raised the issue of whether the Central Bank is the right body to hold and mange this database. Other suggestions were put out there such as the Personal Injuries Assessment Board and the CSO.
The Minister is proceeding with the Central Bank as the body responsible, but he is failing to draw up tight enough instructions for the Central Bank to operate in.
Technically speaking there is nothing in this Bill to guarantee that any motor insurer would be included. I accept that is the intent, but there is so much leeway given to the Central Bank that there is no legal onus to actually include motor insurers.
Public Liability insurers are kicked down the road. Again there is no legal obligation to have them included.
I have concerns that the reporting rules put in will allow insurers muddy the waters by declaring all sorts of costs as expenses meaning they will look as if they are less profitable than they are.
As legislators, we shouldn’t simply tell the Central Bank go and make regulations. We are the ones accountable and should influence primary law. In this case we should be using this influence to tighten up the transparency standards.
The other parts of this Bill which concern me are the changes to the Civil Liability and Courts Act 2004. These are very serious changes. We cannot simply go along with every change suggested just because it is sold as tackling fraud.
We are running the danger of going through a period of reform in the insurance industry, and the only thing actually reformed is that it becomes far more difficult to make a legitimate claim.
The idea of legislation allowing the Courts draw “an inference” is pushing the boundaries of constitutionality and we need to tread very carefully.
I support the Bill and will examine a number of Committee Stage amendments. I would like to thank the Minister for taking on board one of my party’s amendments at Report Stage in the Dáil.
