Motorists were warned yesterday that their insurance policies might not be valid where a driver is the owner of the car but the insurance policy is not in his or her name.
The Minister for Science, Technology and Commerce, Mr Noel Treacy, who issued the warning, said it had come to his attention that insurance policies were being arranged for car-owners with the policy bearing the name of a company or person other than that of the owner.
This could cause the insurance to be invalid, and the motorist could face prosecution for failing to be legally insured and might be unable to claim against the insurer in the event of an accident.
"The policies in question were arranged by a person holding himself out to be an insurance broker. Under Section 44 of the Insurance Act 1989, a person may not act as, or hold himself out to be, an insurance broker unless he meets the various requirements laid down under the Act.
"The Act provides that every person who contravenes a provision of the Act is guilty of an offence."
Inquiries made on behalf of the Minister suggested that this person might not be in compliance with the Act.
Mr Treacy is now examining whether there are possible breaches of other statutory provisions, and the matter is being pursued in conjunction with the Office of the Chief State Solicitor.
Mr Treacy advises motorists who have doubts about the validity of their insurance policies to check with their insurance companies.
Motorists who have concerns about the bona fides of an intermediary through whom they propose to arrange insurance are advised to check the status of the person through either the Irish Brokers' Association or the Insurance Intermediary Compliance Bureau.