FF Tables Motion To Tackle Rising Motor Insurance Costs

Fianna Fáil has tabled a new motion aimed at tackling motor insurance costs, the party's finance spokesperson, Michael McGrath, has announced.

According to Fianna Fáil, motor insurance in the fastest rising item in the CSO basket of good following a 60% increase since January 2014.

"Motorists are required to have a minimum of third party insurance cover, so the cost of motor insurance is a major issue for family finances. Increases of €200 – €300 are now typical for customers renewing their policy. Motorists are absolutely reeling from these dramatic price increases," Deputy McGrath said.

"Up to 2013 we were in a period of falling motor insurance premiums. However the benefits that were achieved from concerted action to reduce costs are now evaporating. In our view there is an obligation on the state to respond to these soaring premiums."

The party's "action plan" includes 12 key elements to tackle motor insurance costs:

• Re-establish the Motor Insurance Advisory Board on a time limited basis

• Improve transparency of insurance industry profits and establish a motor insurance database

• Enhance disclosure around policy renewal notifications

• Implement a realistic Book of Quantum for settlement of claims

• Ensure greater consistency in court awards in personal injury cases

• Reform the role of the Personal Injury Assessment Board and the legislation underpinning it

• Reduce legal costs associated with personal injury claims

• Take robust action on false and exaggerated claims

• Legislate to clearly define the roles of Motor Insurance Bureau of Ireland and the Insurance Compensation Fund

• Strengthen road safety enforcement

• Improve regulatory oversight domestically and at European level

• Protect low income and vulnerable customers from unfair practices

Co-author of the action plan, spokesperson on Jobs, Enterprise and Innovation Niall Collins said: "We need more details about the workings of the insurance sector. In the absence of this information customers are asked to take the word of the industry that justifies these price hikes.

"We're calling for the establishment of a motor insurance database which would collect information from insurers about account premiums and claims settlements. This would lead to increased transparency within the industry and would improve policy formulation without breaching commercial confidentiality.

"Action is also needed in relation to false claims which are driving up costs across the board. It's essential that a culture is developed where people know that those who make false or misleading claims will be prosecuted and face a real risk of jail time. This may require an amendment to the Civil Liability and Courts Act 2004 to underline the seriousness with which the State regards false and exaggerated personal injury claims."

(MH/LM)