As UK insurers continue to battle issues around whether to pay dividends and the growing demands over the payments of COVID-19 claims, Irish insurers have announced they are looking at a scheme to refund motor policyholders part of their premiums.
Underwriters in the United States have been offering motor clients partial refunds and the global lockdowns has significantly cut the amount of cars on the road.
Now Insurance Ireland has said it will seek to consult its members on how it can create a refund scheme.
It comes after Finance Minister Paschal Donohoe called on insurers to do the right thing for its customers as the impact of the COVID-19 pandemic grows.
Declan Jackson, Director of Government Affairs at Insurance Ireland, told the media the organisation “will have to see, sustainably, what we can do to support our customers through this” and that it will discuss the issue with its members, “with a view to responding constructively”.
“We will have to look at what is happening in similar markets and see how that could be applied here,” he said.
Insurance Ireland represents 90% of the country’s insurers and said it will seek to examine what can be done “as a matter of urgency”.
The proposal has also been welcomed by the Consumers’ Association of Ireland (CAI) who said it hope there could be scheme where motorists were provided with a pro-rata refund for the weeks that the country remans in lockdown.