It's claimed that if ESC (Electronic Stability Control) systems were fitted as standard on all new cars, many lives could be saved, writes John Cassidy
Up to 400 lives a year could be saved in Britain if ESC (Electronic Stability Control) systems were fitted as standard on all new cars.
That's according to the Motor Insurance Repair Research Centre - or Thatcham, as it is widely known - an independent body that was formed in 1969 by British insurers to carry out research on behalf of the industry. It cites research showing that ESC systems can reduce death and serious injury in some accidents by up to 40 per cent.
Electronic stability control - also known as ESP, DSC, VSC or other acronyms, depending on manufacturer - is a safety technology that works by preventing a car going into a skid under certain conditions, so allowing the driver to retain control of the vehicle. It works by independently braking different wheels according to information on the car's movements picked up by onboard sensors.
For most motorsits, all it means is a little light that flickers on the dashboard. But without it we could - in extreme circumstances - find ourselves in the ditch.
Thatcham argues that such a basic safety feature should be as commonplace as ABS (anti-lock brakes) and airbags, and that pressure should be brought to bear on the motor industry to make it so.
According to the organisation, it only costs manufacturers about €75 to equip each car with stability control, but that the cost is many times this amount when ordered as an optional extra. "Safety should be paramount, and not treated on a par with a set of alloy wheels or an enhanced stereo system," a spokesman claimed, adding that international insurance figures show a 15 per cent reduction of damage costs where stability control is fitted. As expected, the car industry came out fighting. While it does not dispute the safety benefits of such systems and the fact they save lives, the motor industry's British representative group, SMMT (Society of Motor Manufacturers and Traders), defended its members, saying that the motor industry had invested heavily in passive and active safety technology over the years, and that insurance companies had benefited from this to the tune of millions.
SMMT spokesman, Nigel Wonnacott, pointed out that no active safety system is currently included as part of the insurance rating criteria provided by Thatcham, and that this should be changed. He said that it was "high time [such systems' benefits] were recognised in cheaper insurance for customers".
Cyril McHugh, of SIMI (Society of the Irish Motor Industry) backs up their claims. He says that "massive investment" in safety features by the motor industry was "one side of the success story in reducing accidents on our roads."
McHugh says that the industry in Ireland is also burdened with VRT (Vehicle Registration Tax), which the Government applies to all new cars registered in Ireland.
"VRT adds 56 per cent of the cost price of all safety items for cars over 1.9 cc," he says. "The Taoiseach said last month that there was nothing more the Government could do to improve safety on our roads. Here is a concrete example of a positive action that it can take."
While SIMI has lobbied the Government to play its part by exempting safety features from VRT, it also maintains that insurance companies have a role to play.
"Insurance companies should also encourage people to buy cars with additional safety features by making reductions in policies for these cars," notes McHugh, adding that "such an incentive would encourage people to purchase safer cars".
Certain VRT exemptions are already available for bio-ethanol and hybrid cars. Is the environment more important than the safety of road users? Ford's Eddie Murphy has called on the Government to repeat the environmental exemptions for safety features.
Behind the battle of wits over passing on potential savings from insurance to consumers, the car industry position is driven by the manufacturers' desire to keep base prices as low as possible in a tight marketplace.
Tom O'Connor, Volkswagen sales manager, points out that manufacturers have to be mindful of competitors' prices. So, although not included in the base price of some models, it is still available as an option.
But is that good enough? Should we leave such items to the vagaries of the buyer? If so, then surely seatbelts and other items should be options as well.
Carmel Mulroy, of the Irish Insurance Federation (IIF), agrees that the research cited by Thatcham "clearly endorses ESC systems", and said that it made sense for manufacturers to consider introducing them to all cars."Insurers in the Irish market have passed on the benefits of lower claims costs to motor policyholders, irrespective of the reasons why claims costs have fallen."
She points to the fact that motor insurance premiums have fallen by 45 per cent in the past three years alone.
Mulroy says that Irish insurers currently take into account a wide range of information when deciding premiums, using their own accumulated claims data, as well as that from sources such as Thatcham.
On the question of the relationship between safety systems and premiums, she believes that it is a question of whether insurers continue to pass on the benefits of lower claims arising from the safety systems to the general pool of policy holders, or use a more targeted approach to pass them on to motorists whose cars are so equipped.
She concludes that "as with all matters concerned with pricing and discounts, this will ultimately be a matter for each individual insurance company to decide upon."
Undoubtedly there are political games being played between the insurance companies and the motor industry.
Regardless of the debate over insurance discounts, the Thatcham results should be considered by consumers when buying a car.
The simple fact is that making such systems standard features in cars could result in massive savings, not just in terms of insurance payouts, but more importantly in terms of lives.
Until such systems are made standard, motorists should consider ESC as an integral part of their purchase and compare prices accordingly.