§ Mr. Carterasked the Secretary of State for Trade and Industry how many policyholders have lost their cover as a result of bankruptcies in motor insurance businesses over the past 10 years.
§ Mr. RidleyNearly 2 million including policyholders of the Vehicle and General group.
§ Mr. Carterasked the Secretary of State for Trade and Industry (1) in what circumstances he now proposes to use the statutory powers at his disposal to intervene in the business of motorcar insurance companies which it is judged are carrying on business in an unsatisfactory manner;
(2) to what extent his policy in the field of motorcar insurance has altered since the letter addressed to the hon. Member for Birmingham, Northfield on 31st July, 1970, by his Department.
§ Mr. John DaviesThere has been no change in policy. I shall continue to use the existing statutory powers where appropriate. As I told the House on 2nd March, I am reviewing the adequacy of the Insurance Companies Acts.
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§ Mr. Carterasked the Secretary of State for Trade and Industry how many policyholders lost their cover as a result of the bankruptcy of the Vehicle and General Insurance Company.
§ Mr. RidleyAbout 860,000 in the Vehicle and General Insurance Company Ltd., and about 138,000 in the subsidiaries which have failed.
§ Mr. Leadbitterasked the Secretary of State for Trade and Industry what proposals he has to restore confidence in the field of motor insurance, to examine the cheap rate insurance or package deal covers of companies, and the practices of costing vehicle repairs subject to insurance cover.
§ Mr. John DaviesAs I told the House on 2nd March I am reviewing the adequacy of the law affecting insurance companies within the wider review of company law generally. This will certainly include the consideration of special low rates quoted by certain companies and in certain circumstances: The costing of vehicle repairs in relation to insurance cover is a matter for the industries concerned.
§ Mrs. Sally Oppenheimasked the Secretary of State for Trade and Industry if he will take steps to protect the public against defaulting motor vehicle insurance companies by introducing provisions for a scheme for motor vehicle insurance, applying the same principles as those set out in the Ontario Deposit Insurance Corporation Act 1967, with special reference to the objects of the Act as set out in Section 11, a copy of which has been sent to him, applying the same principles to motor insurance as this Act applies to bank deposit insurance.
§ Mr. John DaviesI will take full account of my hon. Friend's suggestions in the review which, as I told the House on 2nd March, I am carrying out into the adequacy of the law affecting insurance companies within the wider review of company law generally.