Liberty Insurance first to outline refunds plan for motorists

Liberty Insurance is the first motor insurer in the country to outline its plans for refunds for customers.

Five of the leading motor insurers last week pledged to give refunds to customers due to an expected drop in claims because of travel restrictions imposed due to the coronavirus pandemic.

Liberty Insurance was not one of these, although it has announced a €5m fund to cover the cost of rebates for its customers.

Liberty customers will receive 15% of their premium back for a period of two months, subject to a minimum refund of €10. For a customer who spends €700 per year on insurance, this will work out at €17.50, for example.

Customers will have to contact the insurer through its website from June 8 to claim their refund.

Liberty said customers will have the option of claiming the rebate as a ‘cash equivalent voucher’ or they can request Liberty donate it to a charity working on the frontline in the fight against the coronavirus.

Last Friday, Allianz, Axa, FBD, RSA, and Zurich all signed up to offer refunds or rebates to customers.

Axa is understood to be setting aside up to €20m for refunds which, for its 600,000 customers, would work out at about €30 per customer.

FBD said it will return savings to customers, including “standard private car and commercial van and jeep policyholders”.

Allianz, meanwhile, has not updated the Covid-19 hub on its website since April 1, while RSA, on April 24, said they “will be playing our part in providing whatever supports we can” and will work through the details “in the coming weeks”.

Zurich will be in touch with customers “between now and the end of May with more details”.

“All existing private motor and light commercial vehicle insurance customers will receive a payment,” it said.

“You don’t need to do anything at the moment while we work through the finer details.

We’ll make things as easy as possible for you and we’ll be in touch in the coming weeks once we’ve finalised our plans to give you your money back.

The news of refunds has been broadly well received, with a spokesperson for the AA describing it as a welcome development for households who are “facing challenging or precarious financial circumstances”.

However, Daragh Cassidy of Bonkers.ie said customers should not expect too much.

“Anyone who has been out for a walk or their daily exercise will know there is still traffic on the roads and accidents taking place and this will only increase as the restrictions gradually get lifted. So there is a limit to how much of a rebate consumers can expect as technically diving hasn’t been banned and motorists are still allowed use their cars,” he said.

“Also, with so many different insurers in the Irish market, there has been no standard industry-wide approach to issuing refunds and each insurer is taking a different approach.

Some will issue refunds automatically while others will need to be applied for.

"So my advice to consumers is to keep abreast of any communication from your car insurance company on the issue. If in doubt, ring or email and ask for clarification.”