Car Insurers in Ireland agree on measures to ease Covid-19 Crisis

The car insurance industry in Ireland has announced a collection of measures aimed to help personal and business customers through the difficulties brought forth by the Covid-19 pandemic; they included a reduction in premium rates for business customers that will reflect the decreased level of exposure due to restrictions put down due to the pandemic.

Nonetheless, the insurance providers have also alerted that most typical business interruption policies do not cover any claim for a pandemic-based situation like Covid-19. It has risen to be a complex issue in the business world as no insurance markets in the world provide insurance coverage for pandemic related issues, and Ireland is no exception. Insurance Ireland says that insurers are very mindful of their commitments to the customer and will arbitrate every claim fairly and remain in line with policy terms and conditions. They also added that participating companies have agreed that the government states that to close businesses due to the impact of Covid-19 identifies as the same thing as a direction for business interruption claims.

It is also that majority of the car insurance Ireland policies are clear in terms of what they provide cover for to and what excludes the coverage. If there is any uncertainty regarding the meaning of any term, insurers are fervent about giving the benefit of the doubt to the clients; insurance providers have been instructed by the Central Bank that if there is vagueness in the interpretation of the contracts, customers who are making claims in the context of Covid-19 disruption must find in favour of the consumer. 

The banks also informed the firms that it is expected of them to have a valid claim paid out on the dot; it follows discussions between the Department of Finance and Insurance Ireland. The measures announced follow direct participation between representatives from the Department of Finance and Insurance Ireland on how the insurance industry could assist their business clients in the on-going challenging economic state, hence, business customers should contact their insurers or brokers directly in relation to the measures.

Companies will be able to afford flexibility regarding the renewal of their policies with up to twenty-eight days lowed for payment after restoration; there will also be the maintenance of already existing covers where premises are closed or unoccupied for a period of up to ninety days. Firms will be given the option to apply for a change of use of property under the existing policies during the Covid-19 devastation; customers can be assured that car insurance providers in Ireland will continue to deliver during the crisis, says Insurance Ireland.

The Alliance for Insurance Reform has welcomed many developments during this time especially the initial response by the insurance industry to the policyholders. Peter Boland from Alliance states that they would request the individual car insurance in Ireland providers to attest the level of reductions they propose and the timings of the modification; clarity and a sense of urgency should be applied to everything related to insurance so it can be more of a help than a hindrance.