Motor insurers need to be more up-front
THE revelation that AXA, one of the country’s most prominent and indeed reputable motor insurers, charges customers higher premiums to cover driving to and from work raises further questions about practices in the embattled industry.
Clearly motor insurers adhere to the letter of the law and while €20 extra for workplace coverage may not seem excessive, it nevertheless highlights a mean-spirited and grasping approach by AXA in devising its terms and conditions.
What makes the added stipend even more questionable is that AXA maintains that it’s not necessarily a pre-requisite for covering claims arising from accidents on the way to or from work. While that may sound noble of the insurance firm, it also casts the extra charge as being both unnecessary and somewhat underhand.
Research shows that customers often ignore the small print in documentation, understandable given how it’s usually riddled with legal jargon and is hard to comprehend. There is an urgent need for more clarity and transparency from insurance companies in describing their products and how they are costed.
Spiralling motor premiums have put the industry under the spotlight but while recent figures from the Central Statistics Office show the first, albeit slight, fall in prices in over three years, the evidence anecdotally is that consumers have yet to feel it in their pockets.
The industry is also under scrutiny by the EU and the State’s Competition Commission for claims that it’s run as a cartel.
The industry strongly rejects the claims of a cartel. However, it could demonstrate goodwill quite easily, and in a way that doesn’t cut into its healthy profits, by being clear and concise about its premiums.