Insurance sector banking on Government timidity as it continues gouging customers – Mattie McGrath
Independent TD Mattie McGrath has renewed his call for a radical overhaul of the motor insurance sector within the State. Deputy McGrath was speaking after David Fitzgerald, Chief Executive of the Motor Insurers’ Bureau of Ireland confirmed that the number of uninsured drivers has increased by 85% in the past five years:
“It is absolutely clear at this stage that the insurance sector is in no way committed to the kind of reform that will see insurance costs being reduced anytime soon.
I think that if we introduced a simplified system where everybody initially paid a fee of perhaps a few hundred euro with an additional nominal levy on petrol and diesel we could resolve the issue of escalating costs.
Obviously there would be penalties for reckless driving, but for the vast majority of people it would remove the element of completely unjustifiable price hikes which are now occurring year on year.
In its recent Report on the Rising Costs of Motor Insurance The Joint Committee on Finance, Public Expenditure and Reform used very strong language, but to what end?
Nothing is happening except increasingly futile hand wringing.
The government needs to take immediate and drastic action to de-escalate what is now becoming a public liability nightmare if the figures from the Motor Insurers Bureau are to be believed.
The Insurance sector does not have a divine right to gouge the consumer at its pleasure.
It is time for the kid gloves to come off and for the state in this instance to take a ruthless approach to an insurance sector that is making the recent behaviour of the banks look like child’s play,” concluded Deputy McGrath.