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A REPORT INTO motor insurance compensation has been launched by Finance Minister Michael Noonan.
The review, jointly carried out by the Department of Finance and the Department of Transport, Tourism and Sport, has made a number of recommendations.
It calls for coverage of the Insurance Compensation Fund (ICF) to be extended to include third party motor insurance claims in the event of an insurer being liquated.
The review was arranged after the collapse of Setanta Insurance in 2014 left over 1,700 people out of pocket.
The report notes that the “uncertainty” over compensation arrangements that followed Setanta’s liquidation “highlighted weaknesses with the current insurance compensation framework in Ireland”.
The current framework has the potential to leave individuals who have suffered damage or injury through no fault of their own waiting for a significant period for any compensation; it creates an inequity in the compensation of third party motor insurance; and, potentially makes the Irish motor insurance market unattractive to new entrants due to the uncertainty over the operation of the compensation framework.
A working group was established to review the motor insurance compensation
framework in January 2016, and met with a number of stakeholders and assessed the current framework.
Third party claims
The report states that the the level of cover from the ICF for third party motor insurance claims should be increased from 65% to 100% in line with that currently provided by the Motor Insurers’ Bureau of Ireland (MIBI). The increased coverage will be funded by a direct contribution to the ICF from the motor insurance industry via MIBI to the value of 35% of the third party motor insurance claims.
Speaking at the launch today, Noonan said: ”I am satisfied that, when implemented, these recommendations will provide greater certainty regarding the insurance compensation framework in Ireland. Importantly, for insured motorists this will facilitate speedier payments and a simplification of the claims procedure.”
The report continues: “An issue arose as to which fund or scheme is liable to cover the Setanta claims (the Insurance Compensation Fund (ICF) or the Motor Insurers’ Bureau of Ireland (MIBI)).
Legal proceedings commenced in April 2015 between the Law Society of Ireland and the MIBI. In September 2015, the High Court ruled that the MIBI was liable for the claims in respect of Setanta Insurance. The MIBI subsequently appealed this decision and in January 2016 the Court of Appeal upheld the High Court judgement.
The MIBI has been granted leave to appeal the decision to the Supreme Court.
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Insurance is one of the biggest scams of modern life
Can’t live with it, can’t live without it
I’d be happy enough living without it.
Right because you have a sore neck and you get 100,000. Yeah some scam alright? Haha
“Insurance is one of the biggest scams of modern life”
It is, until you need it.
Should be the Irish insurance industry is one of the biggest scams in ireland. Other countries can manage a controlled industry in ireland it’s a free for all for the medical and legal industry with the no regulation of any shape or form.
You have no Idea Simon, I did a bit of research into some of these companies, its a bit frightening. A lot of very dodgy background ethics. Now I try to check the company’s background and unfortunately it’s very difficult to get answers. The financial regulator is mickey mouse trying to play hard man with hyenas.
No doubt future insurance policies will be increased, to offset the amount insurance companies pay into this fund. Surely an investigation into the rising costs of insurance for individuals, with years of no claims, would be more worthwhile. Driving in this country is no longer a luxury, and while insurance is obligatory for all motorists, it should be value for money. Currently, insurance isn’t worth very much.
Setanta didn’t make 1,700 people out of pocket, it’s dipped into the pocket of every single person in this country that has vehicle insurance.
It’s all an absolute farce, simply get one person in the Taoiseach’s office to ring the courts service in the UK, ask for a PDF of the Book of Quantum, print it out, hand it to the courts and tell them ‘you’re using this now, no exceptions’. Job done, insurance premiums down within a year.
Better again allow people to buy their insurance outside of Ireland , premiums would drop like a stone then
Will you stop with that common sense talk. Where are the strokes to be pulled with that attitude.
Ireland has the highest rate of whiplash in Europe. If doctors and judges stopped giving out money to anyone who wants it, It might help.
I’m referring to doctors giving out medical reports for something they can’t assess properly just to receive €150 fee.
I smell another increase in premiums coming
Ive been put off the road by these money grabbers. 2 months without a car because I couldn’t find one insurer to give me a renewal under €1000. 5yrs no claims on a 1.3.
The whole industry is a shambles.
We’re still paying for ICI from the era of another FG Gov
PMPA?
How do you people think 300 euro premiums are sustainable? You have no idea of the amount of claims that cost over 60,000! 300 euro is not enough to to cover and make a profit for insurance companies ye dopes! I say keep rising it until people can’t pay it!
As an example just look at Quinn Insurance. Offered low premiums to all and sundry, didn’t reserve properly, ended up costing the state a fortune.
Ass !
The government should bring in protection for customers against insurance companies who screw them on prices policies
Did this dim government never learn their lesson from the Setanta debacle????
Gibraltar, Malta anywhere but Ireland, just should not be allowed to happen.
Buy a Telsa and you don’t need insurance because it’s driverless car as Elon Musk stated.
Of course you’d need insurance.
There should be insurance for this kind of thing…
I had a problem with an insurance company was told to ring the insurance federation of Ireland,I did no joy with them in fact a very rude person, so called the Ombudsman and guess who answered same guy. I said I’ve just been talking to you how can this be? We share the same office. unbelievable sham I hope some journalist picks up on this.
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