‘A major financial problem’: Deputy Niall Collins
NIALL Collins has criticised the spiraling cost of motor insurance, declaring that there is ‘no evidence’ that increased claims payouts are a reason for ‘rocketing premiums’.
The Fianna Fail TD also called for a task force to be established to tackle the problem of rising motor insurance costs.
Deputy Collins was speaking following receipt of a parliamentary reply which shows that insurance companies paid out more in 2011 and in 2012 than they did in 2014, despite the industry citing the increased number and cost of claims as the main reason behind a 60% increase in premiums since 2014 and a 35% increase in the past.
“While we do not yet have figures for the amount paid out on claims in 2015, the data to the end of 2014 does not substantiate the assertion by the industry that motor insurance claims are the main reason behind rocketing premiums.
“In fact, the amount paid out in claims in 2014 was 36% less than the amount paid out in 2011. This makes it all the more important that the actions set out in a recently agreed Dail motion on motor insurance, initiated by Fianna Fail, are implemented without delay.”
Deputy Collins, who also recently highlighted the plight of a local taxi firm, which he said was at risk of closure having seen its insurance premium increase by 100%, said “escalating premiums are now a major financial problem for private motorists and for thousands of businesses across the country.
“Motorists are now typically paying several hundred euro more in their annual premium than they were in 2014,” he explained.
“We strongly believe that a new Task Force, along the lines of previously successful Motor Insurance Advisory Board, needs to be established to identify the real reasons why premiums are rising at an unsustainable rate and to make recommendations to deal with the problem.”