We all suspected as much, but now it's official

Silent Bob

That's right folks!

Directly from an article in the Irish Times today

originally written by Tim O'Brien
The Insurance Industry Federation has "no plans" to link cheaper insurance directly to driving licences which have no penalty points."

Apparently it is up to individual companies to do this, so far Hibernian is the only one to have done so.

Stephen

****.

Seth Brundle

you both sound surprised
didn't come as a shock to me (unfortunatley)!

Victor

Such a move - the IIF encouraging a certain pricing mechanism - could be considered anti-competitive.

http://home.eircom.net/content/irelandcom/topstories/2291865?view=Eircomnet

Federation has 'no plans' to link premiums and points
From:ireland.com
Saturday, 3rd January, 2004

The Insurance Industry Federation has "no plans" to link cheaper insurance directly to driving licences which have no penalty points.

Currently just one company, Hibernian Insurance, is offering discounts to motorists based directly on the number or absence of penalty points on a driver's licence.

A spokesman for the Insurance Industry Federation said yesterday the federation had no plans for a general passing on of reductions, although companies might offer them individually.

The Minister for Transport Mr Brennan had hoped that insurance discounts would be used to reward drivers for good behaviour - and so representing less risk to the insurance companies.

Following the introduction of penalty points on October 31 2002 there was an immediate effect on driver behaviour with deaths and serious injuries falling rapidly.

Deaths on the road have now fallen to their lowest levels since 1963, according to provisional Garda figures, while the major hospitals treating serious and serious spinal injuries have reported a dramatic drop in the number of patients.

According to Mr Eddie Shaw chairman of the National Safety Council road deaths are now falling by 10 per cent each year, having fallen by 20 per cent over the previous five years.

Mr Shaw also said the deaths masked a substantive reduction in injuries.

Some 80,000 drivers have also picked up penalty points with the first driver to collect 12 points and so be automatically banned for driving, expected early this year.

Speaking on RTÉ radio yesterday Mr Shaw ascribed the reduction in deaths and serious injuries to the penalty points system which he said had led to a dramatic improvement in driver behaviour.

Speaking to The Irish Times a spokesman for Mr Brennan said the minister was "disappointed" that more insurance companies had not seized the opportunity to penalise those with points and ease the burden on drivers who behaved correctly.

But according to Mr Mike Kemp of the Insurance Industry Federation most drivers have already had reductions in their premiums during the year and he said there "would be no central reductions" passed on by the Federation acting as a bloc.

Mr Kemp said the Federation had "no plans" for such a move and any reductions would be a matter for individual companies acting themselves, as Hibernian had done.

Mr Kemp said there were other ways in which the benefits accruing from the reduction in risk could be passed on to responsible drivers. He said many drivers had already availed of reduced insurance premiums this year which were a result of the environment in which the insurance companies were operating.

Some three new offences are to be added to the penalty points system this year.

They will include points for dangerous overtaking, using a hand-held mobile phone and careless driving.