AXA Ireland will instal satellite tracking devices to monitor the driving of 500 policy holders aged 20 to 24. The pilot scheme aims to increase safety and reduce motor insurance premiums.

Traksure has been jointly developed by Galway technology company CELtrak and Dublin based insurance brokers O'Reilly Cullen. Drivers who sign up for the scheme will have special equipment fitted to their cars that will monitor and report their driving speeds and give full details of every time they break the speed limit.

During the pilot scheme drivers who sign up to AXA Traksure will be offered a 45 per cent reduction in their premium. The lease of the unit and monitoring charges cost £950 (€1.2 in year one and £150 per year for the next two years.

Traksure will give a short warning beep as soon as the driver passes the 30 m.p.h. speed limit and again at 60 m.p.h. If a driver persists in breaking the limit, the technology will highlight this. The driver will then be removed from the scheme and be liable to pay the full amount of the premium, plus penalties to remain on cover.