Irish car insurance companies have recently been issued a warning that they must not only pay their claims on time but also alert policyholders what the effects will be on their no-claims bonuses in the future if they were to settle a claim.
Ireland’s Central Bank recently issued a statement that stated motor car insurance providers are required to adhere to consumer protection code terms, most notably the requirement to inform motor accident claimants of settlement offers not just verbally but additionally in writing.
After the bank conducted inspections of files from 10 separate Irish car insurance groups, it discovered that in general the insurers demonstrated high compliance with third-party claim codes. Additionally the inspection found that companies treat their own customers about as well as they treat any third-party claimants involved in an incident.
However after the inspection was completed it was found that a handful of firms neglected to meet the 10 working day claim payment deadline by two or three days.
The inspection additionally found that a number of firms informed customers as to how a claim settlement would effect any insurance contracts in the future only when it came time for them to renew their policies. As it is written, the code has a requirement for car insurance companies to inform their customers of any consequences at the time the claim is processed so as to afford claimants the opportunity to meet the cost of the claim in an effort to preserve any no-claims discount they may have.
Overall however the inspection found that car insurance companies provided an acceptable level of third-party claimant assistance in addition to attempting to pay on claims with minimal delays once an acceptance of liability occurred.