Motor insurers appear reluctant to follow Hibernian into linking premium reductions with the penalty-points system, saying they are already passing on cheaper insurance rates as their claims performance improves, writes Siobhán Creaton, Finance Correspondent.
Hibernian, which claims to insure about 30 per cent of all Irish motorists, has said that drivers without penalty points will be entitled to a 10 per cent reduction in their motor premiums.
However, drivers who incur more than five points may end up paying more for insurance cover.
Hibernian is the first motor insurer to link premium rates with penalty points following a meeting with the Minister for Transport, Mr Brennan. It has said its commitment is subject to gaining access to the National Driver File, where details of points levied on individuals are recorded.
Yesterday the other motor insurance companies said they had already been cutting their premiums following an improvement in their claims performance but remain concerned about the rise in road deaths this month.
The Irish Insurance Federation has called for the National Driver File to be made available to all insurers, but Mr Brennan would prefer to link access with a commitment to reduce premiums by up to 15 per cent.
Allianz, which insures 200,000 motorists, said it had already introduced a 5 per cent drop in premium rates which will come into effect on June 1st and that this followed the cancellation of a 6 per cent premium increase in the previous six months.
Its group chief executive, Mr Brendan Murphy, said its pricing was based on an improvement in the number of claims and that it was not in the business of seeking some quick publicity by promising cheaper insurance on the back of the penalty-points system.
"Like many people in the insurance industry, we believe that we had sufficient laws prior to the introduction of the penalty points system.
"The penalty points have brought an improvement in driving behaviour, but unless there is enforcement this will disappear rapidly" Mr Murphy said.
Allianz said it would like to gain access to the National Driver File but would continue to determine the price of insurance based on the incidence and frequency of motorists' claims.
A spokesman for Royal Sun Alliance said a number of factors, including penalty points, and the awareness and treatment of fraudulent claims, had resulted in an improvement in claims and it was preparing to reduce premiums.
The company has said that it will be applying an average reduction of 7.5 per cent in motor premiums and that some drivers may be entitled to even bigger savings depending on their driving record.
Hibernian's managing director, Mr Gary Owens, admitted that the group could come under pressure if the upward trend in road deaths recorded in May were to continue.
"If the May trends continue we may be under pressure, but at the moment we are not looking for any further improvement on that. If this continues then we will be in a position to implement a 10 per cent cut on November 1st," he said.