In his meeting with Insurance Ireland last week the Minister for Finance and Public Expenditure and Reform, Paschal Donohoe TD, called on insurers to be pro-active and generous in relation to their treatment of motor insurance policyholders during this period of the Covid 19 global pandemic. In this regard, he pointed out that a combination of the very profitable part of this market over last 12 months and what is likely to be a significant reduction in claims for this period due to travel restrictions that are in place, provided a strong case for premium refunds, thus providing some financial relief to their customers in this extraordinary time.
While the Minister acknowledges today’s response from some insurance companies he calls on the individual insurers to quickly come forward with information on the scale of likely premium refunds. The Minister also takes note of the fact that Insurance Ireland has indicated that those taking this step will also continue to review matters as the situation evolves over the coming period.
Minister Donohoe said: ‘In my recent engagement with Insurance Ireland, I had called upon their members to act on motor premium to reflect the new realities of Covid19. I wish to acknowledge today, that a number of the leading motor insurers in the Irish market have today signed up to commitments on premium reliefs for motor customers’.
“This is an important step by the sector and I also appreciate that these insurers will keep the matter under review to see how best they can serve the needs of their customers. Obviously it is for each insurer to look at its own situation and customer base, but I stress the importance for them to take a longer term perspective and be generous with their customers at this time reflecting the recent profitability of the motor insurance market.”
Ends