Progress in motor insurance dispute

The row between insurance companies and brokers over the implementation of new rules on the renewal of motor policies is close to resolution.

Yesterday, the brokers met representatives of the Department of Enterprise, Trade and Employment, which has put in place regulations governing a 15-day notice period for motor insurance customers prior to their renewal date. The Department held a similar meeting with the insurers on Monday.

The regulations arose from a recommendation of the Motor Insurance Advisory Board (MIAB) report into the industry.

Following yesterday's meeting, the brokers got together with the insurance companies to hammer out differences over the implementation of the regulations, which brokers feared would cut them out of the renewal process.

They argued that this would reduce the choice on insurance alternatives available to customers when policies came up for renewal.

A source close to the talks said the two sides had succeeded in framing a common position on implementation of the directive, which would be put to Department officials.

It is understood the outcome will see brokers brought back into the process on the basis that they accept liability for meeting the terms of the regulations.

Insurers had worried that they would be held responsible for lapses by brokers if the intermediaries were involved in the renewal notices.

Both parties are thought to be asking the Department to amend the regulations to accommodate both the insurers and the brokers and to go into greater detail about renewing risks that might have altered during the insurance period.

Mr Martin Long of the Irish Insurance Federation said: "Our objective was, and continues to be, to carry out this recommendation as laid down by the Motor Insurance Advisory Board report, which is in the interest of the customer."

A spokesman for the Department said its position on how insurance was sold - through brokers or directly - was neutral. "Our concern is the consumer," he said.