MEP Mairead McGuinness problems arise where drivers move member states
The EU Commission is to review insurance companies who are not rewarding motorists with good driving histories.
Fine Gael MEP and vice-president of the European Parliament, Mairead McGuinness, says the commission has confirmed a review of the issue is to be undertaken.
She claims motorists are not benefitting from good driving histories across the EU with lower insurance premiums.
Ms McGuinness said that under existing EU law, the Motor Credit Directive is intended to ensure consumers receive the benefits of having no claims bonuses.
“After all, the EU internal market is based on a principle of mutual recognition of goods and services. In the area of car insurance, premiums should be reduced if the driver has a low-incident or accident-free driving record,” she said.
“Policyholders do have the right to request, at any time, a statement of their third party liability claims and insurers must provide such statements within 15 days of the request.”
She believes a problem arises where drivers move from one member state to another, as some insurers are not recognising their driving histories and reducing their premiums accordingly.
“In effect the current directive is not working in this respect because individual insurers may decide how and whether they take account of these statements,” she said.
Elzbieta Bienkowska is Commissioner for the Internal Market.
“The commission plans to launch an evaluation of how the Motor Insurance Directive is working towards the end of this year,” she said.
“As part of that, the commission plans to explore how to strengthen transferability of motor third party liability claims statements between insurers, especially when the policyholder moves from one member state to another.”
It comes a day after a demonstration in Dublin to protest the rising cost of car insurance premiums.