Insurance Bill [Lords]

Greg Knight Excerpts

Tuesday 3rd February 2015 Commons Chamber

[Sir Greg Knight (East Yorkshire) (Con)]

I refer the Committee to my entry in the Register of Members’ Financial Interests.

Will the provision affect third-party cover under the Road Traffic Act 1988 and the level of insurance premiums taken out for motor insurance? May I also ask the Minister, en passant, to pay tribute to the Law Commission, on whose work this Bill is based?

[Andrea Leadsom]

My right hon. Friend will appreciate that this part of the Bill is designed to assist those who have insurance claims against parties that are now defunct, where insurance was originally in place to cover such claims. In theory, that could cover a motor insurance claim, but it is certainly not designed specifically to that end. Likewise, the cost of motor insurance will be determined by claims by the insurance companies themselves, so it is not envisaged that this will affect the cost of motor insurance.

I entirely agree with my right hon. Friend that the Law Commission has done an excellent job. Essentially, the Bill makes the insurance market more effective and fairer.

Question put and agreed to.

Clause 19 accordingly ordered to stand part of the Bill.

Clause 20 ordered to stand part of the Bill.

Clause 21

Provision consequential on Part 2

Question proposed, That the clause stand part of the Bill.