REARVIEW:REPORTS THAT insurance companies are in discussions with the Department of Transport in an effort to gain access to driver records are worrying on a number of fronts.
If sanctioned, the move would allow the companies to see exactly what offences have been committed by drivers when deciding how much they will pay for insurance cover. It is expected that offences such as drink- or drug-driving would see hefty “loading” on insurance premiums but it is unclear if those with few or no points will receive discounts.
Insurance companies have been accused in the past of unfairly hiking motor premiums. I can remember as a younger driver paying more than €2,000 for third-party insurance on a small car because I was a male under the age of 30 who lived in Louth. The fact that I had years of claims-free motoring and a full clean driving licence didn’t seem to matter. It seemed insurance companies were happy to have the “excuse” to excessively charge.
Insurance companies must demonstrate that they will properly police access to the information that they are seeking to access. The industry does not have great form in this regard. The Data Protection Commissioner earlier this year found widespread abuse of data protection laws by insurance companies using “Insurance Link”, a shared claims database holding details of 2.4 million cases.
The report found some employees were disciplined for accessing claims histories on celebrities, while firms were found to be using “pre-claim” data when calculating premiums. “Pre-claims” are initial inquiries by customers who often do not proceed with a claim.
Used in the right way, the ability to take into account a driver’s motoring offences record could benefit responsible motorists and punish those who repeatedly flout the law.
But the State must ensure that companies allowed to access information on a citizen do not abuse this in an effort to increase premiums. Insurance companies must also prove they are capable of handling personal data within the boundaries of the law.