MORE accidents and deaths on the roads are leading to higher motor insurance premiums, the House was told.

Underwriting losses this year are expected to be around £47 million, the same as last year, the Minister of State to the Government, Mr Pat Rabbitte, said. The Guardian PMPA Group had cited deteriorating road accident statistics as a factor in its decision to increase premium rates by 5 per cent on average from November 1st.

The National Roads Authority report for 1995 indicated that road fatalities increased by 8 per cent over 1994. It further reported escalation of road accidents during 1996 had caused the motor insurance industry to anticipate a rise in the number and cost of claims.

To meet stringent solvency and reserves requirements insurance companies must be allowed freedom to set their rates in the light of their underwriting experience without seeking prior approval from the supervisory authority.

In this regard the motor insurance market in Ireland had suffered underwriting losses for many years.

He was responding at Question Time to Mr Ned O'Keeffe (FF Cork East) who said people could not understand why the three major insurers should increase premiums when they were engaged in highly competitive advertising. He called for an investigation.

Mr Rabbitte said the consistent view of the industry was that the major factor driving up the cost of insurance claims, leading to increases for the motorist, was a rise in injuries resulting from drunken, careless driving and speeding. He was having this view examined. He confessed himself "puzzled"

by the competitive advertising.

A consultancy report by Deloitte and Touche stated that the key factors affecting premium rates were the individual driver's maturity and safety record.

The report also indicated that drivers with good claims experience had their premiums reduced in real terms since 1990. Reductions of between 5 and 10 per cent had occurred during 1995 and early 1996.