Uninsured drivers increase
It has been revealed by the Motor Insurers’ Bureau of Ireland (MIBI) that the number of uninsured drivers causing road accident claims has increased by an estimated 10% in 2009.
John Casey, the chief executive of the board, said that whilst the figure was not exact, there has still been a significant hike in the number of compensation claims made against uninsured motorists during the recession.
The latest figures expose that the MIBI settled over 2,000 claims in 2008, with uninsured drivers who were involved in accidents, most of which involved personal injury. It recovered €522,000 in damages. In addition, the MIBI secured 89 judgments against uninsured drivers, as well as 18 judgment mortgages.
Casey predicted that the total for 2009 will be approximately 10% higher than the year before. In December 2009 alone, the MIBI secured judgments worth more than €500,000 against uninsured drivers. While most involved judements between €20,000 and €40,000, one individual was charged with a judgment of €367,784.
The MIBI is responsible for allowing victims to access compensation and justice when they have been involved in an accident caused by unidentified vehicles or uninsured drivers.
Casey said that being uninsured could mean that the driver could be held liable for a criminal injury claim: “It appears that the recession may have had an impact on the number of uninsured drivers on the road. It is a very worrying trend and an extremely serious issue. Driving uninsured is a criminal offence and we will pursue anyone through the courts system if necessary.”
He said that lax surveillance was not a contributory factor to the rise: “There has been an increase in the traffic corps in recent years, and there are more and more roadside checks.”
He added that the cost of cover is not an excuse: “In real terms the cost of motor insurance is the same as 10 years ago. Premiums have been coming down and there is a lot more competition in the market place. Price is simply is not an excuse.”
Uninsured drivers in UK
Uninsured drivers cost the insurance sector millions of pounds every year, with the Motor Insurers Bureau (MIB) processing more than 30,000 claims yearly, caused by uninsured motorists.
Half of the 1.5 million uninsured drivers are younger than 29. However, such practice starts a dangerous circle because insurance premiums rise dramatically after a motorist is caught without a premium – thus making it even less likely that the individual can afford cover in the future.
However, Will Thomas from a price comparison site, offered little sympathy to such motorists: “Uninsured driving is not a victimless crime. The insurance industry had to pay out £400 million for the innocent victims last year, which translated into £30 on every honest driver's insurance policy.
“Whilst there are changes in the pipeline, the fine for being uninsured is still minimal and it isn't a big enough deterrent to dissuade people to drive without insurance – for some, especially young people, it's less than one month's insurance premium – certainly cheaper than the annual premium.
“Recent figures released by MIB suggest that one in 10 young drivers aren't aware that insurance is a legal requirement, however ignorance is not an excuse. More needs to be done to impose the maximum penalty for uninsured drivers and tackle this massive problem in the UK,” he concluded.
Updated on 2/10/2010