A major motor insurer has pledged a 10 per cent reduction in the premiums paid by drivers who have no penalty points, writes Arthur Beesley, Political Reporter.
The move last night by Hibernian Insurance was combined with a threat to penalise drivers who collect more than five penalty points, by increasing their premiums by at least 10 per cent.
Hibernian said its promise to reduce premiums from November 1st was subject to a commitment by the Minister for Transport, Mr Brennan, to release the National Driver File, which contains details of points levied on each motorist.
Mr Brennan's spokesman welcomed the initiative even though it falls short of the 15 per cent cut envisaged by the Minister. The development was a "big leap forward", the spokesman said.
While Mr Brennan is believed to favour the release of the file, he is waiting for specific details about the Hibernian plan before making a decision. Some 20,000 drivers have received points since the scheme was introduced last November.
The development marks a breakthrough for Mr Brennan, who was unhappy with the response from the Irish Insurance Federation to the penalty-points plan. While the points system threatens motorists with the loss of their licence, Mr Brennan had sought a response from the insurance industry to offer an additional incentive for motorists to drive safely.
Hibernian has 400,000 private motorists on its books and claims about 30 per cent of the market. The company said the reduction will be clearly marked on renewal notices as a "penalty-points discount".
The company says the average annual premium for drivers of average age of a standard family car with a significant no-claims bonus is about €800. While such a premium would fall by €80, many younger drivers with big cars pay premiums significantly in excess of €1,000. The incentive to those drivers is greater. Hibernian said the measure will apply to existing and new customers. A spokeswoman said the company had not decided whether those who received the discount in the first year would receive more discounts after that.
The reduction will not apply to Hibernian customers who have one to five penalty points. Those who have six penalty points will incur a 10 per cent loading from November, with a further 5 per cent increase levied for each subsequent penalty point.
The managing director at Hibernian, Mr Gary Owens, said the time had come for insurers to reinforce the initial success of penalty points.
"We have witnessed a reduction in road fatalities since last November and we now have to continue to drive this momentum in order to really change and improve people's behaviour and attitude on our roads," he said. However, he said accident figures this month were a matter of concern.