13/04/2005 Immediate Release
Motorcyclists demonstrate against 140% hike in insurance costs
In a protest this Friday (15th April) organised by MAG Ireland - the Irish
Motorcyclists' Action Group, bikers will again take to Dublin streets to
demonstrate against the continuing spiral of motorcycle insurance premiums.
The Competition Authority last month highlighted the exploitation of
motorcyclists in their final report on competition in the non-life insurance
sector. While their report noted that increases in motor insurance in general
matched the rate of inflation between 1998 and 2004, it stated that in the
same period, "motorcycle insurance premiums increased by 100% even after
taking into account inflation", or by 140% in money terms.
This shocking statistic hides the fact that for some sectors of the market,
particularly young riders, the cost of insurance has increased by far more
than the average, and is now pricing them off the road.
The Competition Authority also found that serious barriers exist to the entry
of more motor insurers into the Irish market because claims data is not
shared among insurers, as it is in many other countries.
The riders will deliver letters of protest to all three motorcycle insurers
operating in Ireland - Hibernian Insurance, Carole Nash, and Axa - and to
the
Department of Transport which is responsible for motor insurance regulation.
MAG Ireland's chairman, Eoin Kirwan, said "This protest is to make it
clear to
the insurance companies - and the Government - that riders have suffered for
too long from lack of competition and outrageous premiums.
"As other insurance premiums continue to fall, we want to ensure that
the
motorcycle insurance rip-off is ended and that riders will benefit from
reducing claim costs. We also demand a prompt opening up of the Irish motor
insurance market to insurers based throughout the EU.
"The Government have long promised to amend the 1961 Road Traffic Act
to
permit Irish motorists to fully benefit from the EU Single Market, but after
several years this has still not been delivered. Motorcyclists are consumers
who have suffered far more than their fair share of rip-off Ireland."
As Ireland suffers ever-increasing traffic gridlock, each motorcycle
represents one less car congesting our roads. Thousands of commuters have
taken to two wheels in a bid to beat congestion. MAG Ireland calls for an
end
to the motorcycle insurance rip-off, for measures to encourage motorcycle
commuting (such as use of bus lanes), and for the elimination of VAT on
helmets and safety clothing.
ENDS
For further information call:
Linda O'Loideoin
MAG Ireland Road Safety Officer
Tel: 085 1531625
office@magireland.org
www.magireland.org
Tel. 01 4530797
Background:
MAG Ireland (The Irish Motorcyclists' Action Group Ltd.) is a non-profit,
non-political organisation set up in 1985 to represent the interests of
Ireland's 40,000 motorcyclists, scooterists and moped users.
Issues tackled by MAG Ireland include insurance costs, road safety, road
user
training, road repair and conditions, motoring taxation, consumer issues,
and
driver licensing.
MAG Ireland offers a wide range of benefits to its membership of almost four
thousand riders, including discounts at many retail outlets and events, a
subscription to MAG Ireland's motorcyclist magazine, a health insurance
scheme and information service.