O’Keeffe - new rules should mean lower motoring insurance costs
A CALL has been made for the Government to pave the way for a reduction in motor insurance costs following the recent introduction of the so called ‘ Clancy Amendment” to the Road Traffic Act.
Cork East Fianna Fail TD Kevin O’Keeffe raised the issue through Dáil questions to Transport Minister Shane Ross and Finance Minister Paschal Donohoe, in which he asked what steps they would take with insurance companies to seek reductions in premiums following the introduction of the new legislation.
Following the introduction the new legislation, it is now illegal for the owner of a vehicle to knowingly allow an unaccompanied learner or an unlicensed person to drive to it and offenders could face a fine of up to €1,000 and the possibility of six-months in prison.
Under the amendment, named after the Kilworth mother and daughter Geraldine and Louise Clancy who died following a collision with an unaccompanied learner driver near their home in 2015, Gardaí have the power seize a vehicle if a learner is found using a vehicle without a qualified driver accompanying them. Unaccompanied learner drivers can also face fines of up to €2,000 or six-months on prison.
Speaking to The Corkman Deputy O’Keeffe said he believed that the new legislation should be used by both Ministers as a mechanism to help bring down insurance costs.
“Now that Gardaí have these stringent new powers, should we now not see insurance premiums start to reduce, particularly for learner drivers who adhere to the new legislation,” said Deputy O’Keeffe.
In his reply Minister Ross said he did not see how the new legislation “should negatively affect the cost of motor insurance”, saying it has been a criminal offence for a learner driver to drive unaccompanied since 2007.
“The new measures in question are intended to increase Garda enforcement powers in this area and act as a deterrent to the highly dangerous practice of learners driving unaccompanied,” relied the Minister.
“As such the new measures should make our roads safer,” he added.
In his reply Minister Donohoe said neither he nor the Central Bank could interfere with insurance pricing as it was a commercial matter determined by insurance companies based on the risks the were willing to accept.
Like his Ministerial counterpart, he said the new legislation should make Irish roads safer.
Deputy O’Keeffe said the admission that the new laws should make the roads safer was the precise reason why insurance costs should be reduced.
“If our roads are safer then it stands to reason that insurance costs should not be as high as the currently are. Learner drivers all too often have to pay exorbitant costs just to get on the roads, roads that according to both Ministers, will now be safer to drive on,” said Deputy O’Keeffe.
“To be honest, I was not at all satisfied with the replies given by both Ministers and intend to pursue this matter further,” he added.