[Article] Women's car cover faces €1,000 rise

Victor

http://home.eircom.net/content/unison/national/2993805?view=Eircomnet

Women's car cover faces €1,000 rise
From:The Irish Independent
Sunday, 11th April, 2004
EOGHAN WILLIAMS

WOMEN may statistically be safer drivers but if the Government has its way, their car insurance premiums could rise by up to €1,000 in line with male motorists.

Equality Minister Willie O'Dea says he will not oppose a controversial EU proposal which seeks to prohibit insurers from discriminating on gender grounds.

Irish Insurance Federation (IIF) members say they will raise insurance costs for women drivers by 50 per cent if the EU directive comes into force.

Dorothea Dowling, the person charged by Mary Harney to investigate the sector, says women's premiums will come into line with the current rate paid by men, which some surveys found to be 75 per cent higher.

But Mr O'Dea says Ireland will not oppose the plan, prefering instead to play the role of "honest broker" during the the country's presidency of the EU.

The Brussels proposal to give both sexes the right to equal treatment in the supply of goods and services has been broadly welcomed, except for the clause which experts say will dramatically put up insurance costs for women.

Although several EU member states have expressed concerns, Mr O'Dea says he is not opposed to the draft directive. "I don't think they charge men and women different rates, but I am open to correction," he said last week.

Ms Dowling, who produced the hard-hitting Motor Insurance Advisory Board report, rounded on the minister.

"We have made our views known to the Department of Justice, Equality and Law Reform, but it seems that none of our views has been taken on board. This is a very good example of why people should go out and vote on the European elections because this whole thing is ill-conceived," she said.

A Justice Department briefing document states the proposal is not likely to be adopted before March 2005. Ireland holds the EU presidency until June this year.

The Department of Justice briefing document also points out existing Irish equality legislation permits insurers to treat men and women differently, provided this is supported by statistical data.

Young male drivers claim on average five times more than their female counterparts from insurance firms, according to Ms Dowling.

She branded the draft directive "illogical and inconsistent" because it applies French actuarial data on life insurance policies to pan-European motor insurance.

Aidan Castle of the IIF says cross-subsidisation will destroy the operation of the motor insurance industry inIreland. "It won't be competitive," he said.

Ms Dowling's MIAB report of two years ago found there is already insufficient competition between motor insurance providers.

mike65

1000 euro? Where do they get these figures from?

How can a grand hike bring the rates into line when I should be paying no more than about 700 euro when I renew my policy this summer?

Maybe the rates for male drivers should fall to bring parity of esteem? (fat chance)

Mike.

Pataman

I agree with mike65, if we take the ludicrously large amount of €1000 as a guide why doesnt the ladies increase by €500 and the gents decrease by the same amount or is this another way of getting more money off people. Notice not one word of complaint from the insurance industry.

Capt'n Midnight

Next it will be agism and then it will be based on ability (though in fairness they don't really discriminate against people who have never passed a driving test)

and we will all pay the same insurance..

in every part of the EU