Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

Demand: COVID-19/Coronavirus related relief from insurance companies

  • 01-04-2020 11:33am
    #1
    Registered Users Posts: 3


    Hi all:

    I wonder if there are any COVID-19/coronavirus related relief from insurance companies.

    We are staying at home not using our vehicles so no or very fewer claims? hardly I see vehicles on roads

    It is very important for a person like me who is paying 200+ per month to AXA Insurance and I am at home from the last 4 weeks.

    Thanks, stay home stay safe


«1

Comments

  • Registered Users Posts: 2,911 ✭✭✭Eggs For Dinner


    I don't think there is much chance. From my own recent experience, new motor claims reported are significantly down, so motor insurance profits should increase, providing the same number of people renew their cover. However, those same insurers are being inundated with Business Interruption claims because of forced closures, so any savings will be needed to cover an unprecedented level of claims for that class of cover. It's all about balancing the books


  • Registered Users Posts: 3 aalam


    I don't think there is much chance. From my own recent experience, new motor claims reported are significantly down, so motor insurance profits should increase, providing the same number of people renew their cover. However, those same insurers are being inundated with Business Interruption claims because of forced closures, so any savings will be needed to cover an unprecedented level of claims for that class of cover. It's all about balancing the books

    I don't think they cover these kinds of business losses usually they have a little hidden clause under 'force majeure'..., I don't have any personal experience though.

    Happy to see!
    Our property management company postpone our rent increase for at least 90 days.


  • Registered Users Posts: 2,911 ✭✭✭Eggs For Dinner


    aalam wrote: »
    I don't think they cover these kinds of business losses usually they have a little hidden clause under 'force majeure'..., I don't have any personal experience though.
    .

    Many do. Business Interruption is a standard commercial insurance product. Not all such policies will provide cover for this specific event


  • Registered Users Posts: 1,242 ✭✭✭aodh_rua


    Has anyone tried suspending their policy or motor tax? We have two cars, but will only need one for the foreseeable future.


  • Registered Users Posts: 2,911 ✭✭✭Eggs For Dinner


    aodh_rua wrote: »
    Has anyone tried suspending their policy or motor tax? We have two cars, but will only need one for the foreseeable future.

    You can suspend your insurance at any time


  • Advertisement
  • Registered Users Posts: 25,291 ✭✭✭✭coylemj


    ..... those same insurers are being inundated with Business Interruption claims because of forced closures, so any savings will be needed to cover an unprecedented level of claims for that class of cover. It's all about balancing the books

    Do motor premiums go down in the year after a winter with no floods or hurricanes?

    Didn't think so.


  • Registered Users Posts: 25,291 ✭✭✭✭coylemj



    Coronavirus: US car insurers refund drivers stuck at home

    A major car insurer in the US is refunding millions of dollars to customers stuck at home during coronavirus lockdowns.

    Allstate, the country's fourth biggest car insurer, said it would give back $600m (£490m) in total to customers.

    Another insurer, American Family Mutual, is also refunding customers, with cheques totalling $200m.

    Both have seen a dramatic drop in accident claims as residents stay at home and off the roads.


    https://www.bbc.com/news/business-52194521


  • Registered Users Posts: 2,911 ✭✭✭Eggs For Dinner


    There are definitely less claims being reported in recent weeks. This should result in improved underwriting results for motor only insurers. In reality, to assess which policyholders are laid up, reduced usage or carried on as normal might outweigh any savings. More likely is that a strong year end balance sheet will allow some insurers to cut rates to attract business and we will enter a 'soft market ' phase where everyone has to reduce premiums to retain business

    Either that or the cartel overlords will just send out a memo to screw everyone


  • Registered Users Posts: 2,911 ✭✭✭Eggs For Dinner


    coylemj wrote: »
    Do motor premiums go down in the year after a winter with no floods or hurricanes?

    Didn't think so.

    A year without floods or hurricanes means an insurer doesn't have to supplement their accounts with an increase in motor premiums and allow that portfolio stand on it merits


  • Registered Users Posts: 25,291 ✭✭✭✭coylemj


    A year without floods or hurricanes means an insurer doesn't have to supplement their accounts with an increase in motor premiums and allow that portfolio stand on it merits

    Doesn't each pillar of the insurance business have to stand on it's own merits?

    With all the controversy about motorists getting screwed by insurance, I've heard the blame laid at the doors of generous judges, exhorbitant legal fees, staged accidents etc. This is the first time I've heard that bad weather in the previous year can be a factor!


  • Advertisement
  • Registered Users Posts: 2,911 ✭✭✭Eggs For Dinner


    coylemj wrote: »
    Doesn't each pillar of the insurance business have to stand on it's own merits?

    With all the controversy about motorists getting screwed by insurance, I've heard the blame laid at the doors of generous judges, exhorbitant legal fees, staged accidents etc. This is the first time I've heard that bad weather in the previous year can be a factor!

    Each portfolio is underwritten to stand on it's own merits, but it doesn't have to. If an insurer incurs significant claims in one sector, it will look to make up the shortfall on other business. It has always been so

    Even big events in other countries or continents affect your premium. All insurers lay off part of their exposure to the global insurance market for a share of the premium. It's called Reinsurance. Irish based insurers often accept, for example, a share of flood cover from an insurer in France. If things go well, it adds to the bottom line. If it goes bad, profits are reduced. Both outcomes influence what the insurer is able to quote you for your car


  • Registered Users Posts: 18,811 ✭✭✭✭Del2005


    aodh_rua wrote: »
    Has anyone tried suspending their policy or motor tax? We have two cars, but will only need one for the foreseeable future.

    If you suspend the policy there'll be no fire or theft cover, so suspend it on the least valuable car.


  • Closed Accounts Posts: 1,049 ✭✭✭GinSoaked


    Insurance companies agree measures to reassure businesses affected by Covid-19

    https://www.breakingnews.ie/ireland/insurance-companies-agree-measures-to-reassure-businesses-affected-by-covid-19-993415.html

    I've just renewed but I'd be interested if there is a general trend for lower insurance - I sort of doubt it?


  • Registered Users Posts: 12,740 ✭✭✭✭galwaytt


    Del2005 wrote: »
    If you suspend the policy there'll be no fire or theft cover, so suspend it on the least valuable car.

    you don't suspend the policy: you suspend the road cover. Fire & theft remains intact.

    Ode To The Motorist

    “And my existence, while grotesque and incomprehensible to you, generates funds to the exchequer. You don't want to acknowledge that as truth because, deep down in places you don't talk about at the Green Party, you want me on that road, you need me on that road. We use words like freedom, enjoyment, sport and community. We use these words as the backbone of a life spent instilling those values in our families and loved ones. You use them as a punch line. I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the tax revenue and the very freedom to spend it that I provide, and then questions the manner in which I provide it. I would rather you just said "thank you" and went on your way. Otherwise I suggest you pick up a bus pass and get the ********* ********* off the road” 



  • Registered Users Posts: 25,291 ✭✭✭✭coylemj


    Del2005 wrote: »
    If you suspend the policy there'll be no fire or theft cover, so suspend it on the least valuable car.
    galwaytt wrote: »
    you don't suspend the policy: you suspend the road cover. Fire & theft remains intact.

    That appears to be the case for most insurers, I read several policy documents and for most insurers, F&T cover remains in place when the policy is otherwise suspended.

    Unless you're insured with FBD. They suspend all cover, see last paragraph below.....

    9. Suspension of the policy

    The cover under this policy can be suspended from the date we have received your request in writing, together with the current certificate and insurance disc.

    If you are paying by direct debit, we will continue to collect your direct debit instalments during the period of suspension.

    We will refund the premium for the suspension period, less any administration fee, provided:

    • the suspension has lasted for at least 28 days in a row,
    • there has been no claim on your policy, and
    • no claim is pending
    While the policy is suspended, all cover will be suspended including driving of other cars, if applicable, and no policy section will apply


  • Registered Users Posts: 6,522 ✭✭✭El Gato De Negocios


    Most insurers I have dealt with do not leave F & T cover on automatically when a policy is suspended. Policy holders have to generally request that F & T cover remains operative so ime the FBD wording above is the rule and not the exception.


  • Registered Users Posts: 25,291 ✭✭✭✭coylemj


    Most insurers I have dealt with do not leave F & T cover on automatically when a policy is suspended. Policy holders have to generally request that F & T cover remains operative so ime the FBD wording above is the rule and not the exception.

    It seems to vary from one company to the next so as always, it's best to read your policy document. According to their policy documents, Axa and Liberty leave F & T cover in place automatically but it's a customer option (as you described) in the case of Aviva and 123 dot ie

    Axa:

    If your car is laid up and out of use, you can suspend your cover by returning your certificate and disc of motor insurance. We will suspend all cover from the date we receive the certificate and disc of insurance, except for loss or damage caused by fire and theft, or attempted theft, if we cover fire and theft under the policy.


    https://www.axa.ie/download/axa-car-insurance-policy-010420.pdf

    Liberty:

    During any period where we have suspended the insurance, we will still insure the vehicle against loss or damage in line with the insurance cover provided under section 1

    https://www.libertyinsurance.ie/system/files/2019-04/Private-Vehicle-Policy-Booklet_1.pdf


  • Closed Accounts Posts: 40,061 ✭✭✭✭Harry Palmr


    Someone, I forget who was on Newstalk or RTE radio this morning wondering out loud about this exact topic. The only way to make it an issue is to....make it an issue. Start tweeting your local TDs etc.


  • Registered Users Posts: 176 ✭✭Carbon125


    French insurer MAIF will refund it's policyholders:


    "The confinement has lead to a significant decrease in traffic and road accidents. Consequently, the MAIF “Mutuelle d'Assurance des Instituteurs de France” decided to return part of the motor premiums to 2.8 million policyholders.A lump sum of 30 EUR (33.17 USD) per vehicle shall be refunded to the members holders of a motor insurance policy"


    Source


    So there is at least one insurer who is doing the decent thing, voluntarily even...


  • Advertisement
  • Registered Users Posts: 3,640 ✭✭✭Corvo




  • Closed Accounts Posts: 40,061 ✭✭✭✭Harry Palmr


    I eagerly await my fiver.


  • Registered Users Posts: 2,911 ✭✭✭Eggs For Dinner


    Be better off leaving it with the insurer, let them make decent profit this year and then they can aggressively price cover next year. When insurers make decent profit, they slash premiums. That's the soft market


  • Registered Users Posts: 3,739 ✭✭✭scamalert


    what about simply cancelling insurance does one still receive their NCB ? as that's the only reason i could see drivers being held hostage by insurers. traffic has been down to trickle for the past months, and as OP outlined most families would have 2 cars, and would hardly use both. as really one is more then enough given current situation.


    will be interesting to see quotes for renewal once this crap is over, but guess rip off and prices pulled out of thin air will still be pretty much the norm :cool:


  • Moderators, Business & Finance Moderators, Motoring & Transport Moderators, Society & Culture Moderators Posts: 67,059 Mod ✭✭✭✭L1011


    scamalert wrote: »
    what about simply cancelling insurance does one still receive their NCB ? as that's the only reason i could see drivers being held hostage by insurers. traffic has been down to trickle for the past months, and as OP outlined most families would have 2 cars, and would hardly use both. as really one is more then enough given current situation.


    will be interesting to see quotes for renewal once this crap is over, but guess rip off and prices pulled out of thin air will still be pretty much the norm :cool:

    You can get a NCB cert dated to the date you cancel but it doesn't increment your year. I cancelled Quinn (on DD) some years ago after they screwed me over on something and it took quite some pushing to get that NCB out of them for the replacement insurer.


  • Registered Users Posts: 176 ✭✭Carbon125


    123.ie are giving back €30. That's the good news. The bad: it's in the form of a "One4All" voucher.


  • Registered Users Posts: 530 ✭✭✭Zatoichi


    RSA decided the One4all voucher was the most efficient and safest way in accordance with Governmental guidelines on Social Distancing. We decided a cheque would not be appropriate because it would necessitate customers going to a bank to lodge.

    Strange. They had no problem refunding money directly into my bank account previously.


  • Registered Users Posts: 2,911 ✭✭✭Eggs For Dinner


    Zatoichi wrote: »
    Strange. They had no problem refunding money directly into my bank account previously.

    With staff working from home with restricted access to IT and phones, it would be a nightmare to contact every customer to get individual bank details and do an EFT. The cost of this would eat in to the proposed fund allocated to returned premiums. Far better to just blanket post a voucher to e everyone.

    I still stand by my previous argument that it would be in everyone's interest to allow insurers retain the refund, post decent profits and compete against eachother with lower premiums next year


  • Registered Users Posts: 25,291 ✭✭✭✭coylemj


    I still stand by my previous argument that it would be in everyone's interest to allow insurers retain the refund, post decent profits and compete against eachother with lower premiums next year

    I’d agree with you but it was always on the cards that one or more insurers would cave in to media pressure and give some kind of refund.


  • Advertisement
  • Registered Users Posts: 2,255 ✭✭✭Shlippery


    Liberty sent out theirs today.

    €20 voucher for SuperValu or Circle K, else a €20 donation to charity.

    (not sure if €20 is same for everyone)


Advertisement