Young Drivers call for price control on Motor insurance following

national | miscellaneous | news report Thursday April 18, 2002 12:04 by Finghin - Motor Insurance Justice Action Group

Young Drivers call for price control on Motor insurance following publication of MIAB Report. The report shows that insurance companies are making 10 time the profits of their UK counterparts.

"It is difficult to have any great confidence that the high cost of
insurance will alter radically in the near future as the current situation
suits to many interests" is a quote from the executive summary of the long
awaited MIAB report.

"MIJAG welcomes the publication of the report and congratulates the MIAB
Committee for its good work. It is official now that Ireland has a very
expensive, in-efficient and profitable motor Insurance Industry that is in
need of radical surgery. Un-fortunately if every one of the 67
recommendations in the report were implemented there is no guarantee that
Young Drivers paying ?3,000, ?4,000 and ?5,000 for Insurance would pay less.
In that sense the report does not go nearly far enough" said Mr Murphy.

"This Government and the one before it wrote reports on this issue but are
un-willing to tackle the huge and well organised vested interests involved.
The Young Drivers will continue to mount huge Political Pressure including
backing Candidates such as David Green in order to force the Government to
take action that will affect the cost of Insurance" Mr Murphy said. "MIJAG
believes that no driver with a clean driving record including beginners
should have to pay more than ?1,000 for Insurance. That demand will only be
won when Young Voters who are being ripped off force the Government to act.
The MIAB could have recommended price control as a way of bringing about a
quick change in the situation but ruled it out. If the Government are
serious about tackling this and now they have no excuses, they should do
something dramatic like introducing price controls before the Election is
called" Mr Murphy added.