Dáil Éireann Debate, Thursday - 26 November 2020
123. Deputy Martin Browne asked the Minister for Finance if he has asked the motor insurance industry to provide refunds to learner drivers, who typically pay very high premiums until they receive their licences but have been unable to take the tests due to Covid-19 restrictions. [36600/20]
View answerAt the outset, policy in relation to driving tests and any decision to postpone tests, are a matter for the Minister for Transport, Eamon Ryan TD. In relation to insurance refunds for learner drivers, it is important to note that neither I, nor the Central Bank of Ireland, can direct the pricing of insurance products, as this is a commercial matter for insurers. This position is reinforced by the EU Single Market framework for insurance (the Solvency II Directive) which expressly prohibits Member States from doing so. While I have a full understanding that learner drivers have not been able to take their test as a result of COVID-19 restrictions, I am not in a position to direct insurance companies as to the pricing level or terms or conditions that they should apply in respect of particular categories of drivers or vehicles, including those with learner permits.
However, I believe that insurers are a fundamental part of the financial services sector and they have a major role to play in ensuring that their customers are treated fairly in these very difficult times. In view of this, at a meeting on 17 April with Insurance Ireland, I called on insurers to be pro-active and generous in relation to their treatment of motor insurance customers. In this regard, I pointed out that a combination of the profitable private motor insurance market over the last 18 months and what is likely to be a significant reduction in claims for this period due to COVID 19 related travel restrictions, provided a strong case for premium refunds, thus providing some financial relief to their customers during this extraordinary time. On 24 April, Insurance Ireland announced that a number of their members: Allianz; AXA; FBD; RSA; and Zurich had signed up to commitments on premium reliefs for motor customers. In addition, Liberty Insurance wrote to me directly informing me of discounts that it would apply to its customers.
Finally, while the amounts provided by way of rebate were small and applied across the board, it would be my expectation that drivers with a learner permit should have been similarly treated. Ultimately, however, I believe that those learner drivers impacted by the restrictions, have the option to shop around for better prices and service from their insurer upon renewal. In this regard, I believe they will remember and favour those companies that have made steps towards meeting their needs at this difficult time.
