Number of claims involving uninsured drivers jumps

Warning of increased premiums as more claims recorded during first seven months

Overall, there were 688 claims recorded in Dublin, up 78 on the 610 claims seen during the first seven months of 2015
Overall, there were 688 claims recorded in Dublin, up 78 on the 610 claims seen during the first seven months of 2015

The number of motor insurance claims involving uninsured or untraced drivers jumped by 17 per cent between January and July, according to new figures.

The data show there were 1,644 claims involving such drivers during the first seven months of 2016, up by 235 versus the 1,409 claims lodged during the same period a year earlier.

The Motor Insurers’ Bureau of Ireland (MIBI) figures show 42 per cent of such claims were made in Dublin with the capital also showing a big spike in general claims made compared to last year.

Overall, there were 688 claims recorded in Dublin, up 78 on the 610 claims seen during the first seven months of 2015. The next highest number of claims were in Cork (129) and Galway (92).

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Between January and July, claims increased in 20 counties, with the largest percentage change being in Roscommon, which recorded an increase of 500 per cent as the number of claims rose from 2 to 12.

Decline

Four counties experienced a decline in the number of claims, the largest drop being in Limerick which had 80 claims, down from 95 in 2015.

The number of claims in Clare and Kildare were the same across both years.

MIBI, which was established by the Government and the insurance industry in the 1950s, pays out approximately €60 million a year on claims involving uninsured or untraced drivers. David Fitzgerald, the body's chief executive, warned that the jump in claims involving such drivers would likely impact on premiums in the future.

“An increase of 17 per cent represents a significant jump in the number of claims being lodged. It showcases the increased pipeline of payments facing the MIBI. While no sums are yet attached to these claims, unfortunately more claims generally means higher levels of payments coming from the MIBI and ultimately, that will impact on motor insurance premiums,” he said.

Charlie Taylor

Charlie Taylor

Charlie Taylor is a former Irish Times business journalist