Insurance companies have updated their policies following the introduction of the National Car Test (NCT) on January 4th. A policy brief issued recently by the Irish Insurance Federation (IIF), which represents the insurance industry, says there has always been a condition in motor insurance policies requiring policyholders to maintain their vehicles in a roadworthy condition.
If a defect resulting in failure to obtain an NCT certificate does not contribute to the cause of an accident, insurers will cover for legal liabilities and, if comprehensively insured, for the damage to your own car as well.
"However, if the defect contributes to the cause of an accident insurers will deal with any claim from the victim while reserving the right to recover their outlay from you." Insurers would be within their right to refuse a claim from you for damage to your own car.
If the NCT says your car is dangerous and unfit to be driven you are putting yourself at serious risk of being uninsured if you drive away from the test centre. The IIF suggests that policyholders have their car towed from the NCT in this event.
Insurers may now require that policyholders with a car eligible for testing produce an NCT certificate before their policy may be renewed. Driving a car liable for testing without an NCT certificate is an offence attracting a penalty of £350 (€444).
Testing is being introduced on a phased basis. In 2000, cars first registered before January 1st, 1992 must be tested. Next year, cars first registered in 1992-1996 must undergo the NCT. From 2002 onwards all four-year-old cars and older cars will be scheduled for re-testing. NCT certificates are valid for two years.
The NCT is part of the Government's overall road safety strategy which aims to reduce fatalities and injuries by 20 per cent by 2002. This reduction may see a subsequent reduction in insurance premiums for consumers as the price is calculated using a risk assessment formula that includes the number and amount of claims made to an insurer.
The Irish Insurance Federation says: "Premiums are dictated by claims costs. If there is a sustained reduction in claims costs then premiums reductions will follow."
An informational leaflet on the NCT is available from the National Car Testing Service tel: 1890 200 670, fax: (01) 413 5996; e-mail: info@ncts.ie or the Department of the Environment and Local Government vehicle standards section (01) 888 2000.
