The insurance industry is expected to withdraw cover from drink drivers who are involved in accidents from the beginning of next year. More than 10,400 people were prosecuted for drink driving in 2000.

The Motor and Personal Insurance Standing Committee of the Irish Insurance Federation (IIF) is close to reaching agreement on an industry initiative to help deter bad driving practice.

Standard motor insurance contracts already have a "duty of care" clause, but what is being proposed by the industry now is much more specific. Under the new proposals, the driver responsible for the accident may be liable for third party costs paid out by the insurer to the innocent party.

Under the Road Traffic Act, motor insurance is compulsory and insurers are obliged to provide third-party cover. The industry proposal would see claims being settled in the usual manner without third-party claims being affected per se.

If it were subsequently deemed that the insured driver was above the legal limit for alcohol or under the influence of drugs, the insurer would have the right to pursue the insured for costs. Material damage to the vehicle of the insured would not be covered.

Certain Irish insurers already apply restrictions to "own damage" on comprehensive policies and will not pay out in cases of drink driving. With most existing policies, a driver with comprehensive cover cannot claim for personal injury if he or she is responsible for the accident.

In reality, only a tiny proportion of insured drivers would have the resources to meet the costs of a personal injury claim. But under the new proposals, insurers could recover as much as possible and drink drivers' homes would be at risk.

Chief Supt Denis Fitzgerald of the Garda National Traffic Bureau told The Irish Times the withdrawal of cover from drink drivers would be a welcome move. "It would be a positive contribution the insurance industry could make to road safety," he said. Alcohol is a factor in 25 per cent of all accidents.