THE Hibernian Group is increasing its car insurance rates by 4.8 per cent, following another sharp rise in the number of claims last year.

The group, which insures 100,000 motorists, has said that up to 60 per cent of its customers will have to pay higher premiums this year. It insists, however, that it will be cutting rates for some motorists, with those over 40 years and living outside the major cities set to benefit most.

Despite tougher drink driving laws and a series of high profile road safety campaigns, the number of injuries and deaths on Irish roads is still increasing, the company said.

According to Hibernian's bead of underwriting and claims, Mr Dick O'Driscoll, the group has received a 12 per cent rise in the number of claims arising from motor accidents over the past year.

Hibernian's claims bill rose from around £44 million in 1995 to £50 million last year, he said, as a result of another sharp rise in the number of road deaths and injuries.

Mr O'Driscoll said that the changes in its pricing structure follows extensive research on its customer base over the past five years. The average cost of a motor claim, he said, is currently £4,000, mainly arising out of accidents involving specific categories off motorist.

Its research has shown that younger male drivers continue to pose a bigger risk to insurers than those over 40 years of age. In some cases, Hibernian has decided to offer older mate drivers a more favourable rate of insurance. Drivers within a 25 mile radius of Dublin will continue to pay top motor premiums under Hibernian's new pricing policy. Motorists along the east coast are also being moved up to this level, with those from between Co Louth and Co Wexford facing more expensive premiums.

Those in Kerry, Mayo and Donegal, however, will continue to be offered more attractive rates, it said, in line with a lower instance of claims from motorists in these areas.

Hibernian, which estimates it has retained its 13 per cent share of the motor market, is also introducing a number of new services.

Young drivers joining family insurance policies will be entitled to more favourable rates under the new arrangements. Customers with other policies with. Hibernian will also be offered discounts of up to 10 per cent on motor rates and factors such as the age of the vehicle being insured will also affect premium rates, it said.