Insurance companies should cut premiums to 1999 levels after benefiting substantially from Government measures to reduce the cost of claims, according to an Oireachtas report to be published this week.
Following record profits of more than €700 million last year, the report will say the industry stands to benefit even further from lower claims linked to the Personal Injuries Assessment Board and laws aimed at cracking down on bogus claims.
The report is also expected to call for:
A monitoring authority to allow for the speedy confiscation of uninsured cars;
Processing of penalty points and other measures to be transferred away from the Garda to a State agency;
An inquiry into the high cost of legal fees;
The establishment of the long-promised Garda traffic corps.
Some of the recommendations in the report by the Joint Committee on Enterprise and Small Business, chaired by Fianna Fáil TD Mr Donie Cassidy, are set to make uncomfortable reading for the Government.
The committee's call for the immediate establishment of a Garda traffic corps resurrects a pledge contained in the 2002 Programme for Government which has, in effect, been abandoned due to apparent legal difficulties.
The report will also express disappointment at the Government's failure to establish a promised inquiry into legal fees and insurance costs.
The Tánaiste, Ms Harney, will consider the report, which is due to be published later this week.
While the report will call for a return to premium costs of five years ago, the Irish Insurance Federation (IIF) last night insisted that claims were already falling sharply.
The IIF's chief executive, Mr Mike Kemp, said he was disappointed by a negative attitude towards insurance firms making money.
"The general reaction to success in business has been to applaud it. With the insurance industry, it seems to be a case of vilification. I have a slight problem with that attitude."
The Central Statistics Office (CSO) has indicated that motor insurance claims fell by 13 per cent last year, while the industry says there has also been a significant drop in commercial insurance.
Figures show the industry benefited substantially from lower claims in 2003, resulting in record profits of €747 million.
The report will also advocate a number of measures used in the US which are aimed at reducing the number of non-insured vehicles on the road.
It includes a system where all insurance companies would notify a central monitoring authority of any changes to vehicle insurance.
This authority then notifies a motor vehicle owner that his or her car is not insured and may be confiscated.
It will also call for the "urgent consideration" of major reforms to the way penalty points and other matters are processed by gardaí.
It is expected to advocate the introduction of an electronic system like the one in New York State which allows patrol officers to send ticket information to the government or courts system for processing.
Mr Cassidy is also expected to call on the Tánaiste to do "everything possible" to bring a new general insurer to the Irish market immediately.
Mr Harney was in London yesterday, where she met with almost 100 representatives of the UK insurance industry to discuss plans to open up the Irish insurance market.
"I believe that by enticing a larger number of insurance providers to write business in the Irish market we can increase competition, and bring about even greater reductions in premiums," Ms Harney said.
