ABOUT 27,000 motor cyclists will face higher insurance bills from next month as Norwich Union, which insures more than 95 per cent of motor cycles in the Republic, has announced that it is increasing premiums.
Norwich Union said that after a full review of its motor cycle accounts, premiums would rise by between 5 per cent and 10 per cent from April 6th. The rise in the cost of insuring a motor cycle comes as the State's largest motor car insurer, Guardian PMPA, is reducing the cost of its car premiums by up to 10 per cent.
Premium costs for Norwich Union customers who have third party cover will increase by 5 per cent for those outside the Dublin area, and 7.5 per cent in the capital. Norwich said its experience of comprehensive cover was "particularly poor" and it was therefore increasing premiums in this area by 10 per cent.
While motor cycles account for about 2 per cent of all registered vehicles in the State, 8 per cent of accidents in which a driver is killed or seriously injured involve them.
Motor cycle accidents increased substantially last year, according to figures from Norwich Union, as during the two months of the summer 23 fatalities were recorded. The company said that in the six months to the end of December, the number of claims was up 15 per cent on the same period last year. That trend has continued into January, according to Norwich.
Norwich Union has also announced that, for the first time, it is introducing a no claims rebate of 10 per cent, subject to a minimum of one insurance year claim free on a current policy. The company has also extended its comprehensive cover product to all bikes where the insured person is aged 25 and above. Comprehensive insurance was previously only available for motor bikes under 350 cc.
The company is also introducing personal accident cover for pillion passengers which will be automatically included in all policies at no extra cost to customers.
The cover includes accidental bodily injury while mounting, dismounting, or travelling as a pillion passenger on any motor cycle covered in the policy schedule.
