TWO motor insurance firms have outlined the rebates they are paying to policyholders.
Motorists insured with Liberty Ireland are to get back 15pc of their premium for two months, subject to a minimum of €10.
This means that if a driver is paying €700 a year they will get back €20.
The company said it would issue what it called “cash-equivalent vouchers”.
This is likely to be in the form of a voucher for a petrol station. This approach is being looked at as it is too expensive to issue cheques and some customers are reluctant to share bank details.
And Axa is refunding what is expected to work out at up to €30 per policy.
Liberty said its response to the Covid1-19 pandemic, which has led to a huge drop in traffic volumes, will cost it €5m.
A number of insurers have committed to refunding motorists and lowering premiums after pressure from Finance Minister Paschal Donohoe.
It comes after similar moves in the US and from one of the leading insurers in Britain.
Liberty Ireland said its policyholders could claim a “cash equivalent voucher”, or they can donate the money charity working with front-line workers battling the virus.
Chief executive of Liberty Insurance Tom McIlduff said: “We recognise that these are exceptional circumstances and now is a challenging time for many of our customers. We also recognise that risks on Irish roads are reduced in light of current restrictions.”
One of the State’s largest motor insurers, Axa, plans to give a rebate to customers that is expected to be up to €30 for each motor policy, and likely to be paid in the form of a cheque.
The company is understood to be setting aside up to €20m to pay for the refunds.
The move reflects that fact insurers are getting fewer claims due to the nationwide shutdown caused by the Covid-19 pandemic.
It is understood Axs has around 600,000 motor policies in this country, which is almost a third of the motor market.
Last week five insurers announced they would return funds to their motor customers. They are Axa, Allianz, FBD, RSA and Zurich.
It is understood AIG is to lower its premiums rather than offering rebates, a move that would discourage shopping around.
Asked if it was offering rebates, Aviva would only say it will continue to review traffic volumes, driving habits and claims.