The Oireachtas Committee on Finance, Public Expenditure and Reform is to call representatives from the insurance industry before them amid fears that savings made from planned reforms of the awards system will not be passed on the customer.
Sinn Féin's Finance spokesperson Pearse Doherty told today's hearing that there should be a commitment from the industry that premiums would fall as a result of lower awards.
The government is proposing legislation which would allow for a re-calibration of the levels of awards for injuries.
"There is no guarantee whatsoever that any of this will be passed on to the customer. Past experience is that the industry will just pocket this money," Mr Doherty said.
Minister of State Michael D'Arcy said the planned reforms were for the benefit of the customer, not industry.
"I've made pretty strong statements about insurance companies. I don't hold them in high regard. They always win. They are the people who charge you the premium," Mr D'Arcy said.
He said he met Insurance Ireland and conveyed that he expected reductions to be passed on to customers.
Fianna Fáil's Finance spokesperson Micheal McGrath said research from the Alliance of Insurance Reform representing small businesses showed premiums had increased by an average of 200% in five years. He said 494 people had taken part in the survey.
Mr McGrath said the research showed the situation was at "crisis point", and closing businesses and threatening the activities of charities and festivals.
PBP-Solidarity TD Richard Boyd Barrett said taxi drivers had been particularly affected by rising premiums.
"Premiums for them were so high that their livelihoods were at risk. Even if they had the slightest prang it could push their premiums to the point where it just wasn't viable to operate," Mr Boyd Barrett.
Mr D'Arcy said a report on premiums facing taxi-drivers was with the Minister for Transport.
He also told the committee that there had been 50 cases of insurance fraud reported to the Gardaí since last October, 25 of which were staged accidents.
