asked the Minister for Industry and Commerce if he is aware that most, if not all, fire insurance policies contain compulsory arbitration clauses which allow no appeal against the arbitrator's decision and which do not require him to furnish reasons for his decision; and that this procedure has caused hardship to many people who are insured, in particular to a person in County Kildare (name supplied); and if he will consider the introduction of legislation to strengthen the rights of those insured in such cases.
Ceisteanna—Questions. Oral Answers. - Fire Insurance Policies.
61.
I am aware that standard fire insurance policies contain a compulsory arbitration condition under which disputes must be referred to an arbitrator whose decision is final, and who is not obliged to furnish reasons for his decision. The arbitrator is selected with the agreement of both parties.
I am not aware that this procedure has caused hardship to many people, but I have asked the Insurance Industry Committee to consider whether any change is called for in the existing practice.
Is it the Minister's opinion that these compulsory arbitration clauses are constitutional in view of the fact that effectively what is happening is that a judicial decision is being taken by somebody who is not accountable to the courts?
I do not accept that it is unconstitutional.