§ 103. Mr. Oakesasked the President of the Board of Trade if he will order an immediate inquiry into the affairs of all motor insurance companies established during the last five years.
§ Mr. JayNo. The Board of Trade keep in close touch with new motor insurance companies and request quarterly accounts in appropriate cases. Inspectors appointed by the Board of Trade under Section 165 of the Companies Act, 1948, are at present investigating the affairs of five motor insurance companies.
§ 105 and 106. Mr. Fisherasked the President of the Board of Trade (1) whether he will introduce legislation to prevent cut-rate motor insurance by companies which are not members of the British Insurance Association and which have inadequate resources or reserves from which to meet claims;
283W(2) if he will seek legislative authority to inspect the balance sheets of motor insurance companies in order to ensure that their reserves are adequate to meet the demands upon them.
§ Mr. JayThe Insurance Companies Act, 1958, already requires insurance companies to deposit with the Board of Trade annual balance sheets. The Companies Bill contains provisions strengthening the supervisory powers of the Board over insurance companies. These powers would relate to such matters as the resources and reserves of the company, but would not involve direct control of premium rates.
§ Mr. Oakesasked the President of the Board of Trade how many, and which, motor insurance companies are at present the subject of an investigation by his Department.
§ Mr. JayThe following five motor insurance companies are being investigated by inspectors appointed by the Board of Trade
- Fire Auto and Marine Insurance Co. Ltd.
- Irish-American Insurance Co. Ltd.
- Coventry Insurance Co. Ltd.
- London & Cheshire Insurance Co. Ltd.
- London & Midland Insurance Co. Ltd.