PRESS RELEASE
:
19/04/2002 Immediate Release
MAG Ireland which represents over 30,000 motorcyclists, moped and scooter riders in Ireland has welcomed the publication of the long awaited Report of the Motor Insurance Advisory Board. The Report contains among its 67 recommendations a call for the establishment of a Motor Policyholders Protection Fund using the motor insurance levy collected up to 1993.
“This recommendation is of particular relevance to motorcyclists in the wake of the collapse of Independent Insurance which left over 8,000 motorcyclists in a situation where it was not clear whether or not they were insured and also whether premiums paid would be refunded to them. The government consistently refused to involve itself in this issue and it was left to MAG Ireland to advise thousands of Irish bikers of their rights. In the end the UK Policyholders’ Protection Board refunded 90% of unused premiums and agreed to pay 90% of legitimate claims made under Independent Insurance policies” says Campaigns Officer Karen Kiely.
Irish motorcyclists, like many other Irish motorists, are incensed by successive governments’ failures to address the issues of profiteering by insurance companies, the high costs of claims, delays in processing claims and the lack of properly funded training initiatives to improve road safety and reduce accidents.
“Motorcyclists in Ireland are particularly affected by the lack of competition within the insurance industry, with only one insurance company offering cover on these machines until Carole Nash Insurance came into the Irish market in 1997. With only two companies to go to and with Carole Nash catering to the over-23 market exclusively, Hibernian have an effective monopoly on providing insurance to the younger rider. In the light of the Report’s findings on the profits made by insurance companies on policies provided to younger motorists, the assertion by insurers that this sector of the market is unprofitable is no longer tenable.
“The establishment of a Statutory Office of Insurance Ombudsman will greatly assist motorcyclists in dealing with insurance companies and will ensure the compliance of insurers with current and future legislation and the IIF voluntary Code of Conduct proposed in the Report.
“The three-month deadline for the report of the Implementation Board is also welcome”, says Karen Kiely, “Irish motorcyclists have waited long enough. We would hope to see the recommendations of the MIAB properly implemented without delay and a fair and equitable system established.”
Background:
MAG Ireland (Irish Motorcyclist's Action Group) was set up in 1985 and represents the interests of Ireland's 30,000 motorcyclists, scooterists and moped users.
Areas tackled by MAG Ireland include road safety, training, road conditions, technical harmonisation, tax issues, consumer issues affecting riders, licencing and insurance.
MAG Ireland offers a wide range of benefits to its membership of over four thousand riders including discounts at many retail outlets and events, a subscription to Ireland's
largest circulation motorcyclist magazine, a health insurance scheme and information service.
For further information call
Karen Kiely, National Campaigns Officer
MAG Ireland Head Office: 01 4530797
Mobile: 086 8632444