GUARDIAN PMPA, the State's largest motor insurer, has responded to claims that motor premiums are too cheap and need to rise sharply.

Guardian, which insures 40 per cent of Ireland's private motorists, cut rates last month by up to 9 per scent. Mr Aidan Cassells, the company's planning director, said the company has no plans to increase premiums this year. "The company is transacting business at a satisfactory rate," he said. "We are making profits and there is no question that we are underpricing.

Eureko Ireland, the holding company for Celtic International and Friends Provident, warned earlier this week that motor rates may have to rise by 10 per cent this year. Celtic has around 3 per cent of the motor market.

The company reported operating losses of £8 million and raised premiums for drivers between 27 and 39 years old. It is considering upping rates for other categories of driver.

Last month Guardian cut rates for most categories of driver A male over 25 who lives in Dublin for example, will now pay £451.29 for comprehensive insurance on a 1400cc car, down from £494.95 before the cuts. The same man driving an 1800cc car in a county bordering Dublin now pays £551.59, down, from £606.16.

Mr Cassells added that Guardian Direct, which was only set up lasts June, will be an "important part of the business". Celtic said that its direct business came under most pressure last year.

Mr Cassells also rejected Celtic's claims that prices being quoted in, the market are "illogical". "Things are tougher", he said. "We won't do, as well as last year but we are still making profits."

MR Larry Goodman was granted an application in the High Court yesterday to have two additional companies added to the legal proceedings in which he is claiming £22.5 million from a Co Tipperary farmer, Mr Joseph Kenny.

Mr Justice Kinlen also set June 28th for the hearing of the action.

The original plaintiffs in the action were Mr Goodman and First ABP Holdings Ltd, registered in Belfast. The two companies added as plaintiffs are UK registered Second Anglo Beef Processors Ltd, and Gem on Ltd, a wholly owned subsidiary of First ABP Holdings Ltd.

Mr Goodman and the companies claim that under a loan they advanced to Mr Kenny in March 1990, the money which was due to be repaid before June 13th, 1990, was still owing.

The judge said he was quite satisfied there would be no injustice to the defendant by adding the two plaintiffs.