asked the Minister for Industry and Commerce on what grounds it was decided not to give retrospective effect to the reduction in motor insurance premiums and if, in view of the findings of the Prices Advisory Body, he will now consider giving retrospective effect to this reduction.
Ceisteanna—Questions. Oral Answers. - Motor Insurance Premiums.
The recommendation of the Prices Advisory Body was that the reduction in motor insurance premiums should operate as from 1st December, 1952. The grounds on which the body made this recommendation were that there would be considerable administrative difficulty and expense involved in giving retrospective effect to any reduction. The body considered that the most equitable course would be to let the increased premiums run for a full year and to effect a reduction from 1st December, 1952. As stated in my reply to the Deputy on the 22nd October, the fact that the insurance companies will have the benefit of the increased rates for a full year was taken into account by the body in deciding on the amount of the reduction they would recommend. If a reduction in premiums were made retrospective the amount of the reduction would be less than 12½ per cent.
In view of the recommendation of the body, which I have accepted, it is not proposed to take steps to give retrospective effect to the reduction.