In short

A roundup of today's other stories in brief.

AXA launches write-off cover for motorists

AXA car insurance has introduced a new product for drivers who want to be able to replace written off cars with a new model.

On most traditional car insurance policies, if a car is classed as a write-off following theft or damage, the insurer pays the policyholder the market value of the car at that time. As the car will have depreciated in value since it was first purchased, the settlement sum will be less than the original cost.

Under AXA's new "gap" cover, it will pay the difference between the amount the insurer pays out and the current cost of buying a new car of the same make and model.

Premiums for the gap cover start at €250 for a three-year period and rise according to the car's value.

NI broker to open outlets in Republic

Northern Irish broker franchise the Mortgage Shop has received 18 applications from potential franchisees to open outlets in the Republic.

The first three Mortgage Shop franchises will open by the end of January in Dundalk, Drogheda and Letterkenny. The company hopes to open around 10 franchises here next year.

Founder and group chief executive Siobhán McAleer hopes the chain will eventually offer their services to property buyers as well as people switching mortgages.

Irish car hire fees 'higher than UK'

Holidaymakers in the Republic pay higher prices for three-day car hires than holidaymakers in the UK, France, Italy and the US, according to a survey conducted on behalf of ArgusCarHire.com.

However, three-day hire prices in Spain were found to be more expensive, with costs varying by 20 per cent depending on the pick-up location and averaging at €45 a day. France was the most expensive for one-day hires.

The UK was found to be the cheapest country to hire a car, with car hire costing an average of €35 a day, based on a one-week period.

Saver bond offers 4.25% interest rate

Northern Rock has issued a new edition of its Direct Saver fixed-rate bond, which has an interest rate of 4.25 per cent gross a year.

The rate will be fixed until January 15th, 2008, and is available on balances of €1,000 or more, up to a maximum of €3 million. A charge of 60 days' gross interest will apply to amounts withdrawn during the fixed-rate period of the bond. Interest on the limited issue bond can be paid annually or monthly.

Pensions may face negligence claims

Pension fund trustees and actuaries could be opening themselves up to negligence claims by adopting overly cautious investment strategies, Reynolds Porter Chamberlain (RPC), a London law firm, has claimed.

RPC has warned that an investment strategy that is so conservative that it leaves a fund in deficit could attract claims from unhappy scheme members.

"A low-yielding gilts strategy could lock in a fund's deficit, whereas a more balanced gilt/equity investment has a better long-term chance of capital growth," said Simon Goldring, partner at RPC.

He argued that the risk of negligence claims was compounded by the rally in equity markets since March 2003. - (Financial Times service)