25/5/05 For Immediate Release

LACK OF COMPETITION INTENSIFIES FOR MOTORCYCLE INSURANCE

As Hibernian announces its withdrawal from the motorcycle insurance market,
MAG Ireland - The Irish Motorcyclists' Action Group deplores the failure of
the Government to ensure a competitive marketplace for motorcycle insurance.

Last March, in their report on competition in the non-life insurance sector,
the Competition Authority highlighted the exploitation of Irish
motorcyclists. The report noted that while increases in motor insurance in
general matched the rate of inflation between 1998 and 2004, in the same
period motorcycle insurance premiums increased by 100% even after taking into
account inflation, or by 140% in money terms.

This statistic is shocking, but also 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 pricing them off the road.

The Competition Authority 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 withdrawal of Hibernian from the motorcycle market means that only two
insurers will now insure Irish riders, and young riders in particular may
have no choice of insurer.

Eoin Kirwan, chairman of MAG Ireland, said "The withdrawal of Hibernian from
the market is regrettable as it significantly reduces competition. 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.

"Irish motorists cannot fully benefit from the EU Single Market and purchase
insurance from other countries. MAG Ireland will be challenging at EU level
the Irish Government's failure to open up the market to competition."

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.

For further information contact:

Linda O'Loideoin
Tel. 085 1531625
office@magireland.org

MAG Ireland
1b Ring Terrace
Inchicore
Dublin 8
Republic of Ireland
Tel. 01 453 0797

MAG Ireland - The Irish Motorcyclists' Action Group Ltd.
www.magireland.org