The Dáil has passed a Fianna Fáil motion calling on the Government to tackle the spiralling costs of motor insurance.

It was passed without a vote.

Members also accepted a Sinn Féin amendment which called for, among other things, the Oireachtas Finance Committee to examine the issue.

Fianna Fáil wants to re-establish a task force which would examine the reasons for the spiralling costs of premiums as well as the setting up of a national claims registers to record data across the sector.

The cost of motor insurance has increased by 35.5% over the past 12 months, according to inflation figures from the CSO.

Home insurance rose 9.9% over the past 12 months while the cost of health insurance rose by 6.5% over the same period.  

Independents4Change TD Clare Daly said the situation with car insurance was now beyond a rip off and said a cartel was operating, saying the insurance companies were engaging in profiteering. 

She quoted the case of a young man whose premium jumped from €2,400 to a quote of €6,500.

She said the reality is that people are now driving with reduced cover or under real financial hardship.

AAA/PBP TD Bríd Smith said the insurance companies' argument that the claims they are paying out are driving up costs does not stack up. 

She says their profits are very healthy indeed. 

Ms Smith said a State-run insurance company, not subject to the market, is needed to serve the needs of the people.

That call was back by Independents4Change TD Joan Collins.

Independent TD Noel Grealish said he did not think a State-run company was the answer but said something needed to be done and a resolution had to be found. 

Independent TD Mattie McGrath asked where the regulator and Competition Authority were as the costs were rising.

Minister of State for Financial Services, eGovernment and Public Procurement Eoghan Murphy, said the Government was not opposed to the Fianna Fáil motion.

He said, as outlined yesterday, Minister for Finance Michael Noonan has already set up a review of policy regarding the insurance sector.

He said it is expected that group will conclude its work in three months and that will determine what longer-term initiatives may be required.