Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
Updated 4pm
MOTORISTS SHOULD BE given a detailed breakdown of their car insurance premium from insurance companies, an Oireachtas Committee report is to recommend today.
The report, seen by TheJournal.ie before publication today, recommends that renewal notices should be “broken down point-by-point” to clearly show the individual components that make up the total amount being charged.
This should include a breakdown of the charges associated with the quote: for example, explaining that because the driver is male, under 25, driving a car over five years old and parking it overnight in an area that is considered risky by the insurance company.
The committee believes more transparency is needed on how insurance companies are reaching decisions to increase motorists’ premiums. Reports have indicated that annual payments have jump from anything between 40% and 300% recently.
Insurance companies
Speaking at the report’s launch today, committee chairperson Fianna Fáil’s John McGuinness took a tough line with the insurance companies.
He said car owners being hit with up to 300% insurance hikes have been “thrown to the wolves” by the insurance sector.
Despite the sector reporting that it had been losing money in recent years, he said the price hikes could not be justified and were not sustainable.
The committee accused the motor insurance industry of engaging in “cartel-like behaviour” by hiding information, which McGuinness said should be in the public domain.
‘Inexplicable increases’
The committee has said the most disturbing element to the pattern is the “lack of any rationale or explanation for the sudden and inexplicable increases”.
Over the last number of months, the Joint Committee on Finance, Public Expenditure and Reform has been listening to submissions about the rising cost of car insurance.
McGuinness called out key players in the sector and also levelled criticism at the Central Bank.
He said it was time for the Central Bank to “step up to the plate” and protect the consumer.
The Fianna Fáil TD said it was time for the Central Bank to “be fearless” with the insurance companies to ensure consumers are safeguarded, adding that it was a “lackadaisical approach that led us here”.
While he said it was difficult to point to one reason for the spiralling costs, due to the lack of data supplied by the insurance companies, he said the committee hearings showed that a lot of “different players are blaming each other”.
Sinn Féin’s Pearse Doherty said in order for companies to make up for lost profits, they turned to the motor industry, stating it was seen as a “soft touch”.
Other recommendations contained in the report include giving explicit recognition that a valid NCT certification is an affirmation that a vehicle is roadworthy, irrespective of its age.
This is to stamp out insurance companies’ blanket ban on insuring cars that are over 10 years old.
The committee called for an agency to be appointed to collate all the data from the insurance companies and put it into the public domain.
It calls for the Central Statistics Office (CSO) to immediately be assigned responsibility for collecting the information on claims data.
McGuinness also called for the Book of Quantum to be reviewed and updated on a regular basis.
Getting rid of paper insurance discs
The abolition of windscreen paper insurance discs is also being recommended. These are to be replaced by Automatic Number Plate Recognition (ANPR) technology, which should be introduced “as a matter of urgency”.
The issue of returning emigrants and immigrants accessing motor insurance is also included in the report. It’s recommended that a system be established in Ireland as soon as possible to recognise no-claims bonuses and official documentation from other jurisdictions.
So, when can customers expect to see their premiums come down?
McGuinness said the committee could not give a timeline as there are a lot of stakeholders that need to take action.
He said he expected the government to move immediately on the measures that are within their remit – and that includes legislation, he said.
While he said he wanted full cooperation from those in the insurance sector, he expected some would have to be “pulled and dragged to do this”.
“At the end of the day, this needs to be drive by government and the minister,” he said, adding that otherwise, this will just be another report that sits on a shelf.
McGuinness said it was time government show the insurance sector “we mean business”.
Minister of State Eoghan Murphy said he welcomed the committee’s report, adding that it appeared to validate the recommendations from the government’s working group on the same issue.
“I will finalise the government’s plans shortly and today’s discussions, and the work of the committee, will greatly assist government action in providing certainty to consumers and industry alike.”
To embed this post, copy the code below on your site
I hope this is stopped with whatever government comes in, can’t believe that we spend 3 billion and don’t even Owen it, this is not right
@Mick Hannigan: Insanity we won’t own the network but it won’t be stopped. It is all about transfering public money into private hands. Neo-liberalism 101.
@Mick Hannigan: €1 million to ‘ legally’ give away €3 Billion… welcome to FFG world!!!!
@M Bowe: another million on top of the €7 million spent to date on legal fees fighting the €13 billion Apple fine.
@Mick Hannigan: They should just wait another year or 2 for musks starlink. Satelite broadband low latency and most likley cheaper than all other providers. I dont understand how they can charge up to 75 per month here and u get 2 times speed on continent for less than half the cost.
All those projects are going to end up very bad i.e. with the usual tribunal attached to the end of it.
Most expensive broadband in the world.
Most expensive hospital in the world.
Either Blues are dopes or simply corrupted beyond recognition….
@Willy Mc Entire:
I think the FUBAR acronyn describes it perfectly.
€980k isn’t an exorbitant sum in legal fees over two years given the size of the underlying contract; however, expect the final figure for legal fees to end up being many multiples of that figure
So what happens when Elon Musk’s starlink is operational, would we even need a rural wired broadband?!?
Look like this problem is soon to solve itself and we will have wasted €3,000,000,000 of taxpayers money
@Tony Gordon: never mind starlink, closer to the ground youve got FWA and 5G in place by the end of this year – all done by private companies on a commercial basis.
@Tony Gordon: Was just going to say the same thing. New technologies will render it redundant by the time it gets done. A complete misappropriation of taxpayers money.
@Tony Gordon: A giant vanity project by Musk which will lose investors a fortune. Even 5G has already surpassed anything Starlink can offer, so will only be an attractive offering in areas where 4/5G is not an option, and areas where 4/5G are not currently available tend to be either low population density areas or poor areas. Even if Starlink is to break even it’s offering will be expensive.
@Tommy Roche: expensive maybe….3bn euro buys a lot of data
Government – can you please quote us for two years of legal fees
Legal firm – yes no problem it will be 979,999.99
I always love knowing somebody’s budget before i bid a job!
Wait wait…. *grabs popcorn*….. and Go!
No need for it now, Imagine doing a fine job.
Just get it done please.
@sean de paore: no, let’s not.
Elon musk will have broadband globally once project star link is up and running . Clowns.
There is more than 1 virus destroying this economy, & outrageous legal costs is up there.
Surely our AG has his own team of leagle beagles, so why this expense on top?
Just read the motor insurance claims analysis, & 33% of settlements went to lawyers. That indicates that there is huge scope to cut insurance premium costs, if the state sets up a 3rd party only insurance, on regulated compensation terms, & let the foreign outfits offer better policies on a competitive basis.
Same for voluntary non profesdional sports & social organisations to halt the steady destruction of these by liability insurance cost.
@Ollie Conroy: fwa is garbage, I’m on so called 5g and have 2mb right now and every evening and weekend.
Have you any idea of the density and backhaul needed for 5g.. and the continual replacements that will be needed to “fix” Xg every 5 years or so. We’ve flogged the fwa horse enough already.
have your say