Claims of discrimination have been made against insurance companies over how they price their premiums in relation to non-nationals. It appears they are being charged higher car insurance premiums even if they have full Irish driving licences and have lived here for a number of years.
According to Senator Sheila Terry, Fine Gael spokesperson on Equality, demanding higher premiums from people simply because they have come from a different country is a "shocking discrimination".
"It is a matter that the Minister for Justice, Equality and Law Reform, Mr McDowell, will have to seek an answer for," she said this week, when the allegations were raised at a recent meeting of MIJAG, the Motor Insurance Justice Action Group. She said she would be bringing the matter to the notice of the Minister.
The situation came to light when a motorist who called Quinn Direct for a quotation, was asked his nationality, and how long he had lived in Ireland? Richard Darby says he then phoned for a quote for his wife and indicated she was Irish.
"I was told her insurance would cost €2,300. When I subsequently revealed she was American, the premium went up to €2,791. We then put the system to the test by calling up looking for a quote for a Korean woman, aged 50 and living here for three years, with a full Irish licence. The figure demanded was in excess of €3,000."
Under the current legislation, a non-EU national would have had to pass an Irish driving test to get a full Irish licence.
Kevin Lunney, financial services director of Quinn Direct, says the various categories used for premium pricing include age, gender, licence, cover, 'or any other attribute that is found through analysis' to affect claims cost.
"There is no overriding adjustment for any socioeconomic grouping, other than that which is inherent in the historical risk category breakdown above. Any pricing variations applied for insurance are based solely on a measured risk basis and is backed up by our own statistical information over an extended period."
Meanwhile, a tradesman who has been carrying his tools in his private car for 30 years was told by his insurance company two years ago that he would have to change to Class II (commercial) insurance, which had the effect of increasing his premium by some 50 per cent to over €900.
John Carney, a carpenter, has correspondence from his insurers informing him that carrying carpenter's tools in his private car requires commercial insurance. But the same letter says that a person transporting a laptop, or carrying a uniform, protective clothing, briefcase or mobile phone which they use in the course of their work does not come under this rule.
A spokesperson for the insurers said yesterday that while no individual case could be discussed, a private policy can be extended for business purposes, not including carrying goods, without extra charge. She said: "If a car is being used to transport goods, for carrying loads or equipment, this increases the risk and it is a requirement that Class II policies are issued for this cover at an additional charge of 20 per cent. However she said that carrying a box of tools to a job in the boot of a private car would not usually constitute a commercial application.