HC Deb 11 May 1994 vol 243 cc301-2
1. Mr. Illsley

To ask the President of the Board of Trade what representations he has received from British Coal regarding the refusal of insurance companies to insure properties previously affected by coal mining subsidence.

The Minister for Energy (Mr. Tim Eggar)

British Coal has confirmed that from time to time it has been approached by individuals saying that they are unable to get insurance because their property has suffered subsidence damage. In such cases, British Coal has, in general, offered to contact the insurance company to spell out the extent of its remedial obligations in respect of any subsidence damage arising from coal mining.

Mr. Illsley

I thank the Minister for that reply. He and I debated the matter on the Adjournment recently, but since that time I have been made aware of two further cases in which insurance cover has been refused—one in respect of subsidence damage that occurred 30 years ago and the other where the damage needed repairing by means of decoration only. Will he maintain pressure on the insurance companies, through the Association of British Insurers, to ensure that they are aware that such properties are usually sound properties and a good insurable risk?

Mr. Eggar

I will certainly undertake to continue to do that. Of, course, as we know, almost all those properties are in any case covered by the Coal Mining Subsidence Act 1991.

Mr. David Shaw

Is my hon. Friend aware that I recently had a constituency case in which insurance was not so much refused as charged at a much higher rate than it otherwise should have been? In normal circumstances, my constituent would have been able to get a much reduced rate. Is my hon. Friend further aware that there is therefore considerable concern that the coal mines in my constituency, which have been there for some years, have caused a problem in that regard?

Mr. Eggar

I understand the problem, and I think it fair to say that, when examined in detail, most cases arise from a misunderstanding by the insurance companies of the provisions of the 1991 Act. If my hon. Friend lets me have details, I will see what I can do to pursue the case.

Mr. Nigel Griffiths

But why is not the Minister getting tough on insurance companies that run seminars about exploiting the loopholes and avoid meeting the legitimate claims of customers?

Mr. Eggar

The hon. Gentleman loves going for the cheap headline. He would have done both his hon. Friend the Member for Barnsley, Central (Mr. Illsley) and me a bit more courtesy if he had been present to listen to the detailed Adjournment debate on the subject.