Donohoe asks insurers to offer reimbursements



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Finance Minister Paschal Donohoe has warned insurers that they should offer some rebates to motorists because traffic has plummeted during the coronavirus crisis at a time when profits are high.

During a virtual meeting yesterday afternoon, he also told the Insurance Ireland lobby that its members’ reputations are at stake amid concerns that some rely on fine print and technicalities to avoid business interruption payments, since that much of the economy is in the Covid-19 blockade.

“The main message I wanted to convey to the insurance industry, through Insurance Ireland, is the need for the industry to help itself and do the right thing for clients during this time. I made it clear that not doing so will be very damaging to the sector’s long-term reputation, “said Mr. Donohoe after the meeting.

Motor insurance

“Regarding the treatment of auto insurance policyholders, I noted that a combination of the very profitable part of this market in the last 12 months, when combined with what is likely to be a significant reduction in claims for this period, provides a strong argument for some form of reimbursement of consumer premium packages. “

Insurance Ireland said that while no auto insurance reimbursements were being made to date in the UK or Europe, “it pledged to reflect on the Minister’s concerns with its members as a matter of urgency.”

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