Freight Transport Association Ireland (FTAI) has called on the Government to guarantee that freight operators should not pay increased levies on insurance policies, following the supreme court ruling requiring the State’s Insurance Compensation Fund to compensate those affected by the collapse of insurance companies. As a result of the collapse of Setanta, additional levies could be placed on all motorists’ insurance premiums of up to 5 per cent per annum.
“To expect our members to pay a blanket premium increase is utterly unacceptable,” says Aidan Flynn, General Manager of FTAI, “not least because they have worked hard through our accreditation programme to have their insurance rated on risk performance and evidence, not on an arbitrary scale. The fact that the levy to the state could also increase by a similar percentage has not been lost on us either: this is simply a stealth tax designed to penalise hardworking businesses which adhere to the letter of the law.”
Currently, policy holders must pay a levy of 5 per cent on their insurance premiums to cover the state’s losses on the failures of Quinn Direct, ICI and the PMPA. The levy in place currently is more than sufficient to recoup the additional costs of the Setanta ruling, over time, and under no circumstances should insurance policy holders be made to carry the can.
Our members continue to work towards the highest standards of compliance and risk management, and we believe they deserve a viable, competitive insurance market that calculates premiums based on professional standards, not one that takes a blanket approach to price rises, irrespective of the actual demonstrable experiences.
“Increased motor insurance costs for commercial vehicle operators would have a detrimental effect on efforts to remain competitive for businesses already experiencing harsh trading conditions. We demand that the government considers this when concluding how to recoup the cost of the Setanta case. Whatever the outcome it is vital that the decision does not penalise those who are committed to operating to the letter of the law.”
Research by FTAI found that 87 per cent of its member’s experienced motor insurance price rises in 2016, with half of those surveyed saying their premiums had increased by more than 40 per cent during the past year.