Making the first moves. Three months after the publication of the Motor Insurance Advisory Board (MIAB) report into the motor insurance industry, the Irish Insurance Federation (IIF) has announced its first steps towards implementing the report's recommendations.
The Government has set the end of the month as the deadline for its newly appointed implementation body to report back.
With just two weeks remaining, the IIF's own implementation committee has announced that its members will implement four of the 750-page report's "insurance industry" recommendations, in relation to retired and disabled drivers. There is a total of 67 recommendations in the report.
The changes, which come into force from August 1st, will mean that people retiring, and who were covered on company vehicles can now receive no claims discounts in their own names, and get credit for previous insurance experience while insured by their employers.
The insurance firms will also remove restrictions on cover or loaded premiums, from disabled drivers, unless there is evidence of additional risk.
The has welcomed the decision. Christine White of the National Disability Authority welcomed the decision, describing the previous system as a source of discrimination.
Finally, insurance will not seek "supporting business" in another class of insurance as a precondition for quoting of motor insurance. Previously, some customers were asked to take out a policy for their house insurance with the same company in order to get motor insurance.
The IIF has reiterated its concern about the excessive awards in Ireland and have expressed support for the MIAB proposals that all claims for loss of earnings due to personal injury should be supported by documentary proof from Revenue and Social Welfare.
IIF chief executive Michael Kemp said the moves by the industry to put into practice some of the recommendations of MIAB demonstrate its commitment to full implementation of the report.
He said that announcements of implementation plans for the other six insurance industry recommendations in the report will be made over the coming weeks.
"While insurers are expediting the implementation of the 10 specific recommendations addressed to the industry in the report, not until the costs associated with insurance claims are controlled can premiums be controlled.
"For this to happen we need the implementation of the key recommendations in the report, which are all the responsibility of Government, other than of the insurance industry."
The IIF has made a submission to the Government's implementation group identifying what they see as priorities.
Along with implementing the National Road Safety Strategy they suggest sanctions for uninsured driving should be increased, and call for the early establishment of the Personal Injuries Assessment Board and the publication of a book of quantum of damages or judicial guidelines on calculation of damages in personal injury actions.
According to Mr Kemp: "The new administration must act on these priority MIAB recommendations as soon as its Implementation Group reports back and should ensure that all of the report's recommendations are followed up in due course."
In the meantime, the MIAB has moved on to inquire into the cost of commercial vehicle insurance.
It will present its findings to the Government and has invited submissions on the cost of insurance for trucks, buses, company cars and vehicles used for hire or reward.
