Hibernian Insurance has taken the decision to exit from the motorbike segment of its insurance business for all new business from 1 July and all renewals from 1 August 2005.
Hibernian Insurance has taken the decision to exit from the motorbike segment of its insurance business for all new business from 1 July and all renewals from 1 August 2005.
This decision was not taken lightly and is as a result of several years poor trading performance in a difficult market, as well as a number of external factors in particular lack of progress on change to the regulations governing bike riding and training and poor enforcement of pillion passenger legislation.
The 1998 change in EU law, which resulted in insurers being liable for injuries to pillion passengers has also had an impact, as it has proved far more expensive that originally envisaged and has contributed to the financial losses incurred by the company.
It is unfortunate that in Ireland most pillion passenger claims arise from accidents where the biker only holds a provisional licence, despite the fact that it is illegal to carry a pillion passenger on a provisional licence.
Hibernian expanded its extremely successful, free of charge Ignition driver-training scheme to motorbike about two years ago in order to raise safety standards in bike riding and to encourage people to sit the national bike test in return for substantially lower insurance premiums.
Unfortunately, the numbers enrolling to do Bike Ignition were poor and the company was forced to close down the course. Neither has there been any sign of a significant drop in the proportion of motorcyclists who holding a provisional licences, estimated at over half of all bikers.
Hibernian welcomes the recent announcement by minister Martin Cullen concerning the establishment of the Driver Testing and Standards Authority and considers it a definite step in the right direction in terms of its aim to promote the development and improvement of all driving standards.
The company is on record as calling for compulsory basic training (CBT) for motorcyclists and for legislation requiring the display of L-plates for several years. We hope that CBT for motorbike users will be at the top of the agenda for the Driver Testing and Standards Authority.
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Press contact:
Kela O’Riordan,
01 617 8164, 086 606 8842,
kela.oriordan@hibernian.ie
Notes to editors:
- Hibernian is part of Aviva plc, the world’s fifth largest insurance group based on gross worldwide premiums
- Hibernian is Ireland’s largest composite insurer, ranked first for general insurance and top three for life and pensions
- Hibernian has approximately 35,000 motorcycle customers (compared to over 420,000 motor insurance customers)
- Two other insurers provide motorbike insurance in the Irish market at present, Axa through broker Aon and RSA through broker Carole Nash
- Hibernian news releases are also available on www.hibernian.ie