Motor Insurers Bureau of Ireland says the decision will impact the viability of the Irish motor insurance market
The Motor Insurers Bureau of Ireland (MIBI) says a hike in premium costs is almost inevitable, after the Court of Appeal ruled against it.
The MIBI had appealed a High Court ruling which said the group had to assume responsibility for €90 million worth of liabilities from the collapse of Setanta Insurance.
They say the decision 'has severe financial and other implications for the viability of the Irish motor insurance market'.
CEO of MIBI Pat O'Brien says they want an urgent meeting with the new government.
He says they want to "try and get clarity around the relationship between the MIBI and Insurance Compensation Fund".
Kevin Thompson, Chief Executive of Insurance Ireland, says “we appreciate and sympathise with the difficulties experienced by claimants who were left stranded by the liquidation of Setanta Insurance. However, we don’t support the concept of the sector being guarantors for less prudent operators.
"Today’s judgment underlines the need for urgent legislative change to ensure that this does not happen again. Insurance Ireland has been calling for this for the past 18 months." he added.
It comes as over half of drivers – some 54% – say that the price of car insurance is the biggest obstacle when it comes to purchasing a vehicle.