Car insurance premiums likely to fall following court ruling over Setanta collapse. Car insurance premiums are likely to fall “in the short to medium term” following a Supreme Court ruling over the Setanta Insurance collapse, writes Conall Ó Fátharta, Irish Examiner.
Minister Murphy said the implications of the ruling needed to be considered carefully before deciding on the best way forward.
A judgment has overturned previous court findings the Motor Insurers’ Bureau of Ireland (MIBI) should pick up the bill as a result of the demise of the insurance company.
They will be made up of Personal Injuries Assessment Board orders to pay roughly about 155, court orders roughly 61, other settled cases roughly 34.
Mr Murphy said the Government was not in a position to react to calls it fully compensate those affected by the Setanta collapse.
as declared in Motor insurance premiums should now come down after the uncertainty around the Setanta Insurance collapse was resolved in the courts.
Car insurance premiums ‘should come down now uncertainty around Setanta collapse resolved’A failure to reduce premiums would now be seen as a breach of faith by insurers, Minister for State Eoghan Murphy told the Oireachtas Finance Committee.
This is because those courts had said the Motor Insurance Bureau, which they fund, should pay Setanta claims.
Mr Murphy said the Supreme Court judgement last week was a win for insurers who had complained that previous court rulings affected all insurance companies underwriting motor insurance here.
They claimed the previous rulings meant they had to make financial provision for any future collapses.
Car insurance premiums jump 14pc in a year to £800
as declared in The average cost of insuring a car is expected to top £800 for the first time ever next month, as a range of factors come together to drive premiums higher.
Repeated increases in insurance premium tax introduced by George Osborne are one factor.
The average annual premium has risen by £100 – or 14pc – over the past year and £200 over the past two years.
The rate has increased three times since 2014 – doubling from 6pc to 12pc, with the cost being passed directly on to consumers.
Analysts say the steep increase in price will continue.
collected by :Olivia Mathio