Donegal Deputy Pearse Doherty is calling on motor insurers to pass on savings they have made during the Covid-19 crisis to customers.
With fewer claims as a result of reduced traffic, Doherty TD says customers should share in the benefits enjoyed by motor insurers.
The Sinn Féin TD said customers should now be provided with reductions or rebates equivalent to at least 10 per cent of premiums for 2020.
The call comes after the latest CSO figures show a 70 per cent drop in the volume of cars on the road over a six-week period from the end of March to May 9th.
Teachta Doherty said: “Based on recent figures published by the Central Bank, this reduction in traffic could cut underwriting costs for the motor insurance industry by at least 10 per cent this year.
“Before any rebates to customers, this could see insurers pocketing up to €200 million on the back of reduced traffic as a result of Covid-19.
“These savings must be passed on to consumers.”
Doherty claims that insurance companies have taken advantage of the pandemic to bolster their profit margins and the rebates or vouchers currently on offer “bear no resemblance to the savings these companies will make as a result of the Covid-19 outbreak”.
“Some insurance companies are offering vouchers of as little as €25 to customers paying over €1,000 this year for their motor insurance; less than three per cent the cost of their insurance,” Doherty added.
“When insurance companies have been fleecing their customers for years with rip-off premiums, they cannot be allowed to profit from a pandemic.
“That approach must now change.
“Insurance Ireland should publish the total value of rebates that have been provided to motor insurance customers. In turn, the insurance industry should commit to rebates of at least 10 per cent of premiums paid this year.”
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