Every uninsured motorist is now being pursued by a legal firm for reimbursement of any damages paid out on their behalf following a crash, as part of a zero tolerance approach to uninsured driving.
The move is part of a new policy by the Motor Insurance Bureau of Ireland (MIBI) to try and recoup part of the €50 million it pays out each year in compensation following crashes involving uninsured drivers.
John Casey, MIBI chief executive says "every single case where we settle for compensation, bar none, is now referred to Mason Hayes and Curran," a law firm specialising in debt recovery.
This legal firm was appointed in mid-2004 as insurance firms became increasingly concerned at the stubbornly high level of uninsured driving in the State and level of payments being made by the industry on their behalf.
Almost 6 per cent of all motorists in the State, or 100,000 drivers, are estimated to be uninsured. This is one of the highest percentages in Europe, where the average is between 2 to 3 per cent. Included in the group of uninsured drivers are those with lapsed policies and provisional drivers who cross the border into Northern Ireland, where neither their licence nor insurance is valid. Casey said the MIBI was handling a number of claims involving provisional drivers involved in a collision while driving in the North.
The MIBI has paid out €200 million over the last four years to drivers involved in a crash with uninsured motorists. These payouts add a minimum of €50 to the premium for every driver. In 2005 the MIBI had 1,628 claims from drivers involved in a crash with an uninsured motorist.
Every case that leads to a compensation payout will be passed on to Mason Hayes and Curran and they will seek to recoup the compensation.
The uninsured driver is also liable for the legal costs on both sides. To date, Mason Hayes and Curran has recouped more than €500,000 and secured judgments against a further 100 uninsured motorists. As most cases take on average three years to process, this is expected to accelerate sharply.
"This is a new approach. Prior to this, we decided on a case-by-case basis whether or not to pursue the driver," Casey said. "But we have found that there was such an incidence of these situations inside and outside the jurisdiction that we now go after all uninsured drivers whose crashes lead to payouts."
Coleman Curran, Head of Debt Recovery at Mason Hayes and Curran, says the vast majority of uninsured drivers "are people who are unemployed or of very limited means." More than 70 per cent are male.
"Their defence in court is often that they couldn't afford the insurance," says Curran.
"It is a very difficult base of debtor to collect from. You can't collect 100 per cent in every case because the punters don't have the money. We have cases where the debtor's address is under investigation."
Because lump-sum settlements are rarely possible, MHC regularly enters into phased payment arrangements with the insured driver.
If the driver breaks this arrangement or declines to co-operate from the outset, MHC seeks to have the individual prosecuted and jailed.
Judgments can also be attached to any property the uninsured driver owns, including property that they may purchase or inherit in the future.
The MIBI also received 881 claims from drivers involved in a crash with a foreign registered vehicle.
Casey said 35 per cent of these were from Lithuania, Latvia and Poland. A further 35 per cent were from UK registered cars.
