Most Donegal motorists can expect some form of repayment on their motor insurance as a result of Covid-19.
Many cars have now been off the road for a number of weeks and face another period of non-use.
A number of insurers here have now agreed to discount premiums or give refunds to motor customers in recognition of that lay-off.
It follows pressure from the Minister for Finance, the public, businesses and insurance re-sellers for action on the matter.
Insurance Ireland said the insurers recognise that reductions in the amount of road use means the level of claims being submitted will be lower.
“We are now six weeks into the Covid-19 restrictions on movement and it is clear that road usage levels have fallen significantly,” said Moyagh Murdock, CEO of Insurance Ireland.
“While the duration of these restrictions is still uncertain and it is still too early to fully assess the financial impact on the motor insurance sector, but recognising the unique challenges in the Irish market, insurers have agreed to address the issue by signing up to a set of core principles.”
The industry body said because each insurer has a different mix of customers and different claims experience, they will each assess the impact on their customers and then pass on “appropriate financial supports” directly to customers.
The situation will be further reviewed if restrictions due to Covid-19 are extended through the summer.
Most of the leading motor insurers including Allianz, AXA, FBD, RSA and Zurich have signed up to the principles, Insurance Ireland said.
However, Aviva and Liberty are not listed as participants at the moment.Tags: