MOTOR INSURANCE WARNING

Mr Noel Treacy T.D., Minister for Science, Technology and Commerce, has today (Thursday, 30th July, 1998) issued a public warning concerning motor insurance.

Motorists are warned that insurance policies may not be valid where the motorist owns the car but the insurance policy is not in his or her name.

Minister Treacy issued the warning because it has come to his attention that insurance policies are being arranged for car owners with the policy in the name of a company or person, other than that of the car owner.

The Minister has been advised that such insurance may be invalid. A motorist could face prosecution for failing to be legally insured and, more importantly, he or she may be unable to claim against the insurance in the event of an accident.

Minister Treacy advises motorists who have any doubts as to the validity of their insurance policy, to check with the insurance company with which the policy was effected.

The policies in question were arranged by a person holding himself out to be an insurance broker. Under section 44 of the Insurance Act, 1989 a person may not act as or hold himself out to be an insurance broker unless he meets the various requirements laid down in the Act. The Act provides that every person who contravenes a provision of the Act is guilty of an offence.

Enquiries by the Minister suggest that this person may not be in compliance with the provisions of the Insurance Act, 1989. The Minister is also examining whether there are possible breaches of other statutory provisions. The Minister is pursuing the matter in conjunction with the Office of the Chief State Solicitor.

The Minister would remind drivers to make sure that all questions on the insurance proposal form are fully and accurately answered. In particular, to make sure that -

• any proposal for motor insurance is made in the name of the vehicle owner; and
• all answers to questions about the accident, claims and conviction records of drivers to be insured under the policy are accurate and complete.

Persons who have any concerns as to the bona fides of an intermediary through whom they propose to arrange insurance are advised to check the status of the intermediary through -

• the Irish Brokers Association (IBA) (telephone 01-6613067), or
• the Insurance Intermediary Compliance Bureau (lICB) (telephone 01-6761850).

Persons wishing to satisfy themselves that the insurance company with which the cover is to be placed is properly authorised should contact the Insurance Section of the Department of Enterprise, Trade and Employment (telephone: 01-6614444).