FM 106 lunchtime show debates the new car insurance levy to cover Setanta failure

bonky2018

FM 106 Lunch time show debates the new car insurance levy to cover Setanta failure of car insurance claims

The last number I heard was over ~€50 million owed in unpaid claims
Who knows what the real number is but the levy over 30 years with interest rates will easy exceed three time the original number
Thats much like 30 year mortgage is often three time the original figure spread over thirty years .
That suggests the €50,000,000 will turn into more than €150,000,000.

We still haven't finished the first PMPA levy thirty plus years later

Yep rip off Republic at it again but many interesting comments on the show with many speakers saying why can t we get insurance from other EU counties to stop the Rip Off Republic robbing us blind .

The question is out there most people want to know why Irish car insurance is so off the wall costly and other regions it isnt so high .

I liked the info about Hungary which has insurance disks you buy at their borders or it seems inside Hungary for any car from anyplace with any number plates
It is the Hungarian government that pays the third party insurance up to limit they said on program of of ~1 million euros .

It seems its extremely rare for accident to exceed these amounts and if they do well probably tough for the victims unless maybe the Hungarian government covers the difference .

That under EU laws is legal with some places like Lithuania with €300,000 payout limits .
Other regions like Ireland do unlimited pay outs on third party claims but its rarer than hens teeth to pay out more than €1,000.000 for car accident claims

It seems that a Syrian car can go to Hungary buy the Hungarian car insurance disk for €70 and then come to Ireland and drive around Ireland for year
They would it seems be legal and lawful while muggins Irish cant as they would not be legal but would be lawful .


Logic says in open border EU a Irish person could take flight to Hungary buy this €70 euro disk and stick it on their Irish car and drive around Ireland with that as their lawful third party insurance .

However It seems that the Irish car insurance cartel in the program exposed will use the Irish legal system to say although its lawful to do that its not legal and the Garda will prosecute you using legal scam of Irish car insurance Cartel rules .

Then you would have to go to European courts to get the Irish government to over turn the Irish car insurance industry cartels anti EU trading laws that make car insurance costs often 20 times higher than what Hungarians have to pay

Bend over and take it without the lube

Now the Government want us to pay for their for the governments neglect to let a unbonded cowboy car insurance operator doing a reckless car insurance scam that went belly up muggins yet again

Bend over and take it without the lube

So now we Irish muggins have three levies PMPA ,Quinn Insurance, and now Setanta ,

At this rate the governments solution to keep heaping its mistakes onto the us muggins Irish car owners will bankrupt us as they keep to find enough reckless car insurance operators at this rate
So the governments incompetency track record shows us they are able to do that the score is three-nil for the government so far .

the link for the clip of the FM106 show about ~10 minutes long

Time to invest in a horse and cart

https://www.newstalk.com/podcasts/Lunchtime_Live/Highlights_from_Lunchtime_Live/228824/A_third_car_insurance_levy_is_coming._Is_it_fair

new article explains how the new levy combined with old levy will cost €50 on a €750 car insurance policy

http://www.pressreader.com/ireland/irish-independent/20180717/281479277191221

Eggs For Dinner

The GOVERNMENT is putting an extra TAX on premiums because insurers offering cheap premiums couldn't cover the claims Irish motorists, passengers and pedestrians put in.

Harry Palmr

50 euro? More than that. The accumulation of levies and insurance taxes which have their origins in failed companies (and covering the uninsured) is now worth 10% of every policy.

PMPA was paid off about 10 years after the collapse but the government of the day saw no reason to end the levy and no government since is going to say no to free money.

Eggs For Dinner

Far easier for the Government to rake in this free money than accept the risk of a state backed no fault injury compensation scheme

TallGlass

I really don't get why we have to keep on bailing out insurance companies. I don't for one second get how this is in any way shape or form my problem or the governments problem.

L1011

TallGlass wrote: »

I really don't get why we have to keep on bailing out insurance companies. I don't for one second get how this is in any way shape or form my problem or the governments problem.

When you're mid-claim against an at-fault driver insured by one of the failed firms, you are pretty much guaranteed to see differently.

The "bailout" via the fund is for the insured drivers, not the insurance company.


Car insurance is dearer here because of obscene personal injury payouts, high legal fees, ineffective punishment for insurance fraud etc. The frequent failures and extremely bad financial performance of Irish market insurers do clearly show its not some gravy train.

Fanny Wank

Harry Palmr wrote: »

50 euro? More than that. The accumulation of levies and insurance taxes which have their origins in failed companies (and covering the uninsured) is now worth 10% of every policy.

5% - if this levy is introduced then 7%

Of course MIBI levies are also paid (which insurers load premiums for) to cover accidents caused by uninsured drivers.

coylemj

bonky2018 wrote: »

We still haven't finished the first PMPA levy thirty plus years later

The deficit that was dumped on us by crooked Joe Moore and his PMPA has been covered, the Govt. decided to keep the levy so it's now effectively a tax on motor insurance.

It's similar to the way that VAT was removed from the Westlink toll charges but they never reduced the toll to motorists.

L1011

When VAT was added to the westlink they didn't put the toll up in the first place. Was €2 before and after the imposition of VAT as the same amount of money was still going to the state for the majority of users

TallGlass

L1011 wrote: »

When you're mid-claim against an at-fault driver insured by one of the failed firms, you are pretty much guaranteed to see differently.

The "bailout" via the fund is for the insured drivers, not the insurance company.


Car insurance is dearer here because of obscene personal injury payouts, high legal fees, ineffective punishment for insurance fraud etc. The frequent failures and extremely bad financial performance of Irish market insurers do clearly show its not some gravy train.

Firstly. According to the news, it's not just claims here but UK and Malta.

Secondly so when do you suggest we draw a line under constantly adding % amounts onto policy's to cover this? I actually can't believe you agree with this. Do you like giving your money away or something?

There are other ways to do this. This is a cop out solution and as usual the motorists just go along with and in your case even agree with it.

Why don't we throw a few quid on our policies for the builders of the schools that recently got pheked over?

And I have no idea what you scarastically quoted bailout as that is what it is?

L1011

Have you any actually useful suggestion on an alternative? Your non sequitur about builders suggests you don't actually understand the process here to begin with.

A bailout would be something to keep the failed insurer going. Setanta are gone.

TallGlass

My point about the builders is you seen happy to fork out for failed businesses again and again.

We down have 2% 3% and another 2% levies on our policies. This model cannot continue. Your more than happy to keep it up it seems.

And to answer your question my view would change. I feel for the people held up in this mess awaiting payment. My problem is motorists taking the hit again and again and again and again. Why not use the tax and vat for fuel at the pumps to fund this. Its over 50% duty on it, why don't the government take a hit for once?

This can't continue more will go bust cause poeple won't be able to afford insurance, drive without it and push it up even more.

L1011

TallGlass wrote: »

My point about the builders is you seen happy to fork out for failed businesses again and again.

We down have 2% 3% and another 2% levies on our policies. This model cannot continue. Your more than happy to keep it up it seems.

And to answer your question my view would change. I feel for the people held up in this mess awaiting payment. My problem is motorists taking the hit again and again and again and again. Why not use the tax and vat for fuel at the pumps to fund this. Its over 50% duty on it, why don't the government take a hit for once?

This can't continue more will go bust cause poeple won't be able to afford insurance, drive without it and push it up even more.

The government are still running an operating deficit - if they were providing the funding for this they'd increase taxes to cover it; most likely on another motoring cost.

You're going to be paying for it one way or another.

The extra levies for Quinn and now Setanta are expiring; the standing 2% levy fills the fund to try avoid the need for special levies every time an insurer goes pop but the level of under-provision at Quinn was so excessive as to completely use it up as well as need special levies.

Eggs For Dinner

You won't like this answer, but the best way to avoid insolvency funds is to have profitable insurance companies. The only way the Irish branches of the multinational insurers will become profitable is to reduce claims costs. They know that premium levels cannot go much higher, so something has to give at the other end.

Low claims + Low legal costs + reasonable profit = acceptable premiums and no need for such a high insolvency fund

coylemj

Eggs For Dinner wrote: »

The GOVERNMENT is putting an extra TAX on premiums because insurers offering cheap premiums couldn't cover the claims Irish motorists, passengers and pedestrians put in.

In the case of Quinn it was claims from the UK. Quinn was desperate for cash after seeing massive losses when his gamble on Anglo-Irish Bank shares went south.

As big personal injury claims take several years to work their way through the system, he saw motor insurance as a quick way to raise cash so they wrote cheap motor policies in the UK, undercut the locals and the cash started flowing across the Irish Sea.

It was only when the UK regulator informed his Irish counterpart what was happening and that the business was clearly unsustainable that the regulator here told Quinn to stop writing new UK policies.

Quinn's model (if there was one) for the UK business involved chronic under-provisioning for claims so that financial chicken eventually came home to roost and we are now paying for his little scam.

Liam McPoyle

The biggest lol for me about Quinn is that he has started an online gambling firm.

He will be back in the black before too long.

Also, the OP's fixation with lube, or lack there of, reminds me of a multiple banned poster that had a major hair up his hole with the insurance industry. Surely a coincidence.

L1011

For further reading on why premiums are so high here https://www.irishtimes.com/news/crime-and-law/courts/circuit-court/lawyer-accuses-woman-of-lying-through-her-teeth-about-crash-1.3569201

Foreign insurers (bar the few globals we have) don't do business here because they have no interest in being cleaned out. If they entered here the profitable price for cover would be much the same as existing players.

dr.fuzzenstein

L1011 wrote: »

For further reading on why premiums are so high here https://www.irishtimes.com/news/crime-and-law/courts/circuit-court/lawyer-accuses-woman-of-lying-through-her-teeth-about-crash-1.3569201

Foreign insurers (bar the few globals we have) don't do business here because they have no interest in being cleaned out. If they entered here the profitable price for cover would be much the same as existing players.

It is simply astounding how this one VERY simple fact simply WILL not sink in with some people.
For example, Allianz is a large insurance firm here in Germany. They are practically a byword for insurance of any kind.
For some reoson they don't have a problem with more than 4 cylinders, 2 liters, 100 HP, older than 10 years or importet, all of which are factors which cause any Irish insurance representative to crap their pants and faint. (Oh Jaysis, Mary and Joseph, shure we can't be insuren' dat now at all, at all, Jaysis no!)

tcawley29

dr.fuzzenstein wrote: »

It is simply astounding how this one VERY simple fact simply WILL not sink in with some people.
For example, Allianz is a large insurance firm here in Germany. They are practically a byword for insurance of any kind.
For some reoson they don't have a problem with more than 4 cylinders, 2 liters, 100 HP, older than 10 years or importet, all of which are factors which cause any Irish insurance representative to crap their pants and faint. (Oh Jaysis, Mary and Joseph, shure we can't be insuren' dat now at all, at all, Jaysis no!)

The german neck is not as soft as the irish one is