Opposition transport spokesman Joe Debono Grech insisted yesterday that customers needed to be protected from the "cartel" of insurance companies that was hiking premia irrespective of a driver's record.

Speaking in parliament during the debate on a bill amending the Motor Vehicles Insurance (Third Party Risks), Mr Debono Grech said the opposition would back measures to instil greater discipline and safety on the roads.

He said that although the right cover of insurance was necessary, it was imperative to stop the racket in insurance prices, where charges were raised without notice irrespective of any particular driver's record. It was not fair for someone who had never, or seldom, made a claim to have to pay for irresponsible drivers.

Last year drivers saw their premia rise after the September 11 events. Why should he, as a careful driver, have to pay for Bin Laden's actions?

On the other hand drivers took ages to be paid by some insurance companies.

Why should every minister have to keep fighting insurance companies every year for buses to be insured? If some particular buses were the subject of frequent claims, their drivers should be checked out.

Another opposition speaker, Leo Brincat, called for a government study on insurance costs and premia, which were viewed as excessive for young drivers.

Such a study, he said, should look into the number of accidents, the nature of the cost of claims including possible over-involvement of lawyers, settlement time, incentives for careful drivers and the importance of having a market that was fair, reasonable and without suspicion of the existence of a cartel.

He was of the view that some insurance companies could reduce their premia for young drivers and still make a profit.

He also felt that one should consider the appointment of an insurance ombudsman and introduce a charter of rights. This could include the way premia were calculated, the financial state of the insurer and the number of consumer complaints filed against it, the reason why insurance cover was refused, and a right of appeal when a policy was cancelled.

Not all insurance companies were thieves, but some were cowboys that were giving the profession a bad name, Mr Brincat said.

Mr Debono Grech said a reform a Labour government would undertake would involve the wardens service. The hide-and-seek game which traffic wardens were playing with drivers was not getting anyone anywhere. How could somebody be booked for not wearing a seatbelt at 10 p.m. at night on top of a black jacket? How could a warden see that?

The system was working as a money-maker, but was not educating drivers.

He was not saying that Labour would sack the wardens, Mr Debono Grech said, but the system would be made more serious.

Pelican lights were good and needed, but some were too close to each other or too close to corners, posing a danger.

Tougher action was needed to discourage drivers from using their mobile phones while driving, and action was needed now to stop mini-buses speeding between destinations carrying schoolchildren.

And why should buses be allowed to drive down roads which were otherwise one way? A danger was being created simply to save some people from walking a short distance.

Mr Debono Grech said the opposition agreed with the introduction of the points system for driving licences. Indeed this system should be applicable to all licence holders, and not just the new ones, as soon as possible.

Drivers, however, were not the only people who needed to shoulder their responsibilities with regard to traffic accidents and insurance claims. Pedestrians, including women with prams, who did not use the pavements were equally to blame, and should be corrected by wardens and the police.

The rush hour was certainly not the time for horses to be trained on the roads. This sort of thing should be curbed by law, not with fines.

Would the government take steps to ensure that vehicle importers gave good after-sales service and held replacement parts in stock? Why should consumers have obligations, but not importers? Insurance companies should be made to provide such guarantees.

Mr Debono Grech said it was commendable that the courts were taking a more severe line in punishments handed down to guilty drivers, but no amount of money would bring victims of fatal accidents back to life. He was all for discipline on the roads, and anything that would help to this end was welcome.

Mr Brincat said too many cases in Europe were ending up before the European Court because they involved regulations pertaining to the single market. The complex way traffic was increasing called for wide-ranging corrective measures.

Several regulations made in the 1980s regarding motor vehicle insurance had still not been put in practice in various EU member countries.

The biggest headache regarding insurance premia, even in the single market, was that pricing policies varied in various EU countries, including compensation levels.

There was now a move for simpler methods of claiming compensation. Every national government should take steps to ensure that there was no abuse in insurance premia, especially vis-a-vis young drivers.

Several governments were now setting up bodies to study serious accidents. The Maltese government too should beef up consumer protection laws.