The financial services regulator, IFSRA, had been called on to investigate the State's biggest insurer over its refusal to give cover to drivers with five or more penalty points.
Fine Gael's enterprise, trade and employment spokesperson, Mr Phil Hogan, said there was confusion surrounding the intentions of Hibernian Insurance after it had been refused access to the Department of Transport penalty-points database.
It had been the insurer's intention to offer discounts to those with a clean slate while loading drivers with penalty points. But concerns over data protection rights scuppered the plan.
Hibernian chief executive Mr Dick O'Driscoll recently told the Oireachtas Committee on Enterprise and Small Business that the company now planned to seek the consent of individuals before accessing their penalty point data.
Today, Mr Hogan, who sits on the committee, said the implication of Mr O'Driscoll's statement was that Hibernian would refuse to cover to those insisting on their rights.
"The market for motor insurance in Ireland is narrow enough without yet another insurer imposing new restrictions on consumers. It is important that Hibernian's actions in relation to penalty points are clarified immediately and it is up to the IFSRA to carry out this investigation immediately."
Mr Hogan's call today escalates a row between the insurer and the Fine Gael TD who is a former insurance broker.
Mr O'Driscoll recently defended the company's policy saying premiums would reduce by 10 per cent for those with clean licences and that it was standard practice in the industry to refuse new business from those with convictions.
The company set the cut-off at five because it matches the number of points applied for a conviction of driving without insurance.