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The body that represents around 90% of all car insurers in Ireland says it is committed to researching how a driver reimbursement scheme could be implemented here.
Insurance Ireland responded yesterday to a request from Finance Minister Paschal Donohoe to be “generous” and “do the right thing” by clients during this difficult time.
Donohoe said in a conference call with the insurance agency that a combination of a profitable year for the sector and a likely drop in auto insurance claims due to fewer cars on the road at the moment, he presented a “solid case.” for some kind of refund scheme.
Speaking today, Declan Jackson, who is the director of government affairs for Insurance Ireland, said the agency “will have to see, in a sustainable way, what we can do to support our clients through this” and that he will discuss the issue with its members, “with a view to responding constructively.”
Jackson said that part of investigating this issue is seeing what is happening in other countries. He said that in the United States, some insurers are reimbursing the equivalent of around € 10 to € 15 per customer.
“We will have to look at what is happening in similar markets and see how it could be applied here,” he said.
Jackson said this is because most insurers who write auto insurance here do so in various markets and it would be “desirable” to respond in a standard way.
He added that insurers have already “responded extremely positively to Covid-19’s challenging circumstances,” in other areas such as health, life and business insurance.
When considering what they can do for Irish motorists, the sector will consider it “as a matter of urgency”.
The idea of a refund scheme was well received today by the Irish Consumers Association (CAI), who said it makes sense and can be done.
“When you consider the large number of consumers who are paying for something that they are literally not using, it makes sense to consider some form of reimbursement,” said Dermot Jewell of the CAI.
Mr. Jewell said that since we are now in a month on the so-called lockout, there is an opportunity to consider giving a 1/12 refund, which is one month’s premium.
Meanwhile, Sinn Féin attacked the insurance sector, saying it is not “playing its part” during this pandemic.
Dublin’s Midwest TD, Eoin Ó Broin, warned that “everyone else is putting their shoulder behind the wheel and doing everything they can to cope with the economic impact of the virus, except insurance companies and banks,” and said that they would continue to make a profit during this crisis.
“I want the government to act and find a legal mechanism to ensure that people receive relief, get reimbursements, and moratoriums on payments,” he said.
Ó Broin also said he has been talking to families who are now out of work, taxi drivers and delivery drivers who are “all under great financial stress.”
“They have lost wages, they cannot drive, their cars are parked in garages, and they are still expected to pay for insurance. It is simply not acceptable and that is why we need the government to act,” said Sinn Féin TD.
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