Brennan repeats his calls to car insurance firms to cut premiums

Motor insurance debate: The failure of all but one of the insurance companies to cut motor insurance premiums following the …

Motor insurance debate: The failure of all but one of the insurance companies to cut motor insurance premiums following the introduction of penalty points was sharply criticised by the Minister for Transport, Mr Brennan.

"I have been disappointed and frustrated by the response of the insurance industry. Only one company has responded with a clear points-related package for its customers.

"The rest have sat on the fence and waited, and waited. I am again appealing to them to openly display their faith and support for the penalty points system," the Minister told ardfheis delegates.

The new rules are changing motorists' behaviour, he said. "It has had a dramatic impact. It is saving lives. It is slowing down drivers. It is making the vast majority of drivers more responsible.

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"The facts speak for themselves. In the first 11 months of penalty points there have been over 80 fewer deaths. The numbers of seriously injured are down by 20 per cent.

"Spinal injuries have been reduced by 50 per cent. Admissions to Accident and Emergency wards in hospitals have fallen. Insurance claims have dropped by well over 20 per cent," he declared.

He said he repeatedly asked insurance companies to offer "reductions in premiums for motorists with no points on their licence and to increase it for those with points".

"For too long they complained of road deaths rising. And so they said insurance costs had to rise. Now we are reversing that trend. Insurance claims are well down, profits are well up.

"I expect them to deliver real benefits for motorists. And I call on them to do that. And to do it now," said Mr Brennan, who had heard numerous complaints from young drivers forced to pay €4,000 a year premiums.

Mr Michael McGrath, a local elections candidate and a member of Passage West Town Commissioners in Cork, said it was "high time" premiums were cut.

"It isn't acceptable that people are being asked to pay €4,000/€5,000. It's a scandal that 12 months after the introduction of points, Hibernian Insurance is the only company to have done so," he said.

In his speech, the Minister repeatedly emphasised one of the main themes of the ardfheis, that new roads and train services are being developed and will be in service shortly.

"The length and breadth of this country we are witnessing an unprecedented level of construction activity and delivery of major transport projects.

"Every month over €100 million is pouring into building highways to motorways and dual carriageways.

"That is more than €1.2 billion a year on roads alone," Mr Brennan said.

Dealing with Luas, the Minister said it will move 12,000 people an hour when in service.

"The Luas has its critics. I am not behind the door myself in criticising particular aspects of it. But I know that by next summer when it starts up it will be a resounding success.

"My message today is: Get off its back. Let's finish it and see what it can deliver."

Mark Hennessy

Mark Hennessy

Mark Hennessy is Ireland and Britain Editor with The Irish Times