A JUDGE has called on the Competition and Consumer Protection Commission (CCPC ) to take on the motor insurance industry and tackle the small print that is leading to so many motorists driving about under the false impression that they are insured.
Judge James Faughnan has frequently slated the stipulation contained in most insurance policy small print that cover will be cancelled if evidence of no-claims bonuses is not forwarded.
He called for action when hearing a charge before Tuam District Court brought against Eoin Gerard Daly, Cloonshecahill, New Inn for driving without insurance at Farrannamartin, Tuam on May 26 last.
Eric Gleeson solr (defending ) said his client was a 28-year-old carpenter who had fallen foul of the no-claims bonus small print in his policy. He understood he was insured but because he failed to forward his no-claims bonus detail, his policy was cancelled.
“This requirement should be up front and written in bold on every policy and not hidden in the small print. I’m dealing with way too much of these cases and it’s time the Competition and Consumer Protection Commission (CCPC ) took issue with the insurance industry on this matter,” Judge Faughnan said. He refused to impose the mandatory driving disqualification on the defendant, but imposed a fine of €150.
Judge Faughnan has frequently slated insurance companies for their inflexible and bureaucratic processes which result in many motorists risking being put off the road because they are unaware that their policies have been inadvertently lapsed.
“It’s well beyond time this was taken up with the insurance industry,” Judge Faughnan said, adding “I nearly got caught myself.”
“In the small print it says you have to produce your no-claims details within seven days and this is causing no amount of confusion. It’s well past time the insurance industry got its act together and fixed this ridiculous anomaly,” he said. He has advised all motorists to check their policies for hidden details in the small print.
He has estimated 25% of motor insurance cases coming before him were the result of bureaucratic mix-ups and confusing documentation issued by many insurance companies.
“I nearly got caught myself” he said, referring to a practice of lapsing policies, including policies that have been fully paid for, because of details of no-claims bonus records were not forwarded in time.
Judge Faughnan said insurance companies should arrange to have all necessary paperwork in place before they issue policies, not take the money first and then try and deny liability because some clause in the small print facilitates this.
“They take your money,” he said, “give you insurance, you get informed that you’re covered but unless you send in your no-claims history they take it away again. This is wrong and needs to be dealt with as people are driving around assuming they have the insurance they have paid for, but this is not always the case.
“All information needed by insurance companies should be obtained in advance and an end put to these ambiguities. What some insurance companies are doing, either unintentionally or by design as a ploy of deny liability, is simply wrong and this matter needs to be addressed,” Judge Faughnan said.
