Hibernian Insurance has denied Opposition claims that there is any confusion about its position on penalty points.

The insurer accused Fine Gael spokesman on Enterprise Mr Phil Hogan, of "irresponsible scaremongering" on the issue.

Mr Hogan said yesterday it was originally believed that Hibernian had access to the penalty points database, but that due to data protection legislation it would now be forced to seek the consent of individuals.

He said this meant failing to provide Hibernian with this consent would prevent policyholders from securing cover.

A spokeswoman for Hibernian said there was no change to how its penalty points initiative would work and no confusion.

Customers will give the insurer their unique driver number and sign off a declaration confirming the number of penalty points they have amassed.

Hibernian will submit the numbers to the Department of the Environment who will verify that customers who have declared that they have a clean record have no penalty points.

These customers will be given a 10 per cent discount. "If you do not provide us with the information, the most you will lose is your 10 per cent discount," the spokeswoman said.

Mr Hogan also called on the financial regulator, IFSRA, to investigate Hibernian's refusal to quote new customers with five or more penalty points.

No insurer accepts anyone who has had a conviction in the previous three years, according to Hibernian. If anything, by refusing to quote new customers with five or more points, it has relaxed its stance on this, it says.

Ms Mary O'Dea, consumer director of IFSRA, said she would be surprised if people without points would have any difficulty in giving Hibernian consent to check their record.