The information below applies to motor business written on both a freedom of services and a freedom of establishment basis. As there are a number of regulatory requirements for motor business in Ireland, any underwriter considering writing this type of business must contact Lloyd's Ireland in the first instance.
Motor liability insurance is a compulsory class in Ireland under the Road Traffic Act 1961. Lloyd’s underwriters are authorised to carry on motor vehicle liability and accidental damage insurance in Ireland on a freedom of establishment basis and from Ireland on a freedom of services basis.
Compulsory motor insurance policies are subject to regulations made under the Road Traffic Act in accordance with the European Union (EU) Directives on motor insurance. A syndicate that proposes to start writing Irish compulsory motor liability insurance must ensure that it complies with all relevant legal and regulatory requirements including notification to the Motor Insurers’ Bureau of Ireland under Lloyd's umbrella membership. New entrants will also need to ensure that they are compliant with the Automatic Number Plate Recognition (ANPR) system and the National Fleet Database.
Limit of liability
A motor insurance policy must cover the insured against all sums that the insured becomes legally liable to pay to any person on account of injury to a person or property caused by the negligent use of the vehicle by the insured or by any other person named on the policy. Liability for personal injury must be unlimited, but liability for property damage may be limited to EUR 1.12m for any one act of negligence as provided in the European Union (Motor Insurance) (Limitation of Insurance in relation to Injury to Property) Regulations 2011, effective 21 December 2011.
Driving licence requirements applicable 2010 onwards
On 1 September 2010, the Road Safety Authority (RSA) announced an update on the measures outlined in the Road Safety Strategy 2007-2012 to enhance the way in which drivers are trained, tested and licensed in Ireland. The first phase of the modernisation project has been completed and an additional nine actions have been announced.
These measures include:
- All new first time learner permit holders with effect from 6 December 2010 for motorcycles and 4 April 2011 for cars will be required to undertake mandatory initial basic training (IBT) with an approved driving instructor (ADI). The course will be 16 hours for motorcycle and 12 hours for car licences.
- The role of the supervising driver accompanying learner drivers is strengthened and a requirement for learner drivers to maintain a learner log to be signed by their approved driving instructor and their accompanying driver has been introduced.
- The drink driving limits for drivers with learner permits and those in their first two years on a full driving licence will be reduced to 20mg/100ml. This legislation is effective 27 October 2011.
- The penalty points for specified offences will be increased for learner and novice drivers so that accumulation of penalty points during the learning phase and in the first two years on a full licence will pose a real threat of disqualification and will impact positively on risk taking and driver behaviour.
- A standard hazard perception test will be developed and carried out during the novice driver phase. The hazard perception test will specifically address the risk taking and perception of risk among novice drivers.
- The current driving test will be modernised to more effectively reflect driver competencies and to influence the learning undertaken by learners. The externally accredited driving test format is scheduled to be introduced in the last quarter of 2011.
- Novice drivers will be required to display an R (restricted) plate during the first two years of their full driving licence to support the restrictions that are placed on their licence for that duration.
Driving Licence requirements applicable 2013 onwards
- Since January 19 2013 new EU rules relating to the licensing of drivers of some vehicles has changed. The changes apply to new drivers taking out either a learner permit or a full licence for the first time. The most common licence held by Irish drivers is for a motorcar, a category B licence - this is not going to change.
- If you have an existing full licence dated before 19 January 2013 to drive a particular vehicle the changes to the rules covering that vehicle do not apply to you, apart from restrictions on motorcycles
- A minor change in the way some licences are described is planned, presently where there is a car/truck/bus and trailer combination it is described as EB, EC, ED etc., from January all new licences will show them as BE, CE, DE etc.
EU Licence Changes from 19 January 2013
- The driving licence will be in a new plastic card format. This will affect any person applying for a first licence or renewing an existing licence or learner permit.
- There is a new stage in the licence process for motorcycle licences. A new category of motorcycle has been introduced and new rules for progressive and direct access as well as minimum age levels in some cases.
- Ages at which one can take out a truck (C & CE) or bus (D or DE) licence or learner permit.
- Renewal for all truck and bus licences every five years with medical report needed in all cases.
- Additional changes to representative vehicles for truck and bus categories for the practical driving test.
- New rules for weight of truck, and truck or bus with trailer, for the driving test.
- New rules for weight of car trailer when presenting for the category EB practical driving test.
- Changes to licensing rules regarding the limit on the design gross vehicle weight of trailer drawn by the holder of a car and trailer full licence/learner permit category EB.
Motor Insurers' Bureau of Ireland Membership Levy
Lloyd’s is a member of the Motor Insurers’ Bureau of Ireland (MIBI), and is charged as a single entity through a membership levy based on the volume of premium written in a given year. Lloyd's apportions these levy calls across those syndicates writing this business. Each syndicate's contribution is collected via the ARCS system.
All syndicates transacting motor insurance in Ireland are required to abide by the terms of the MIBI Domestic Agreement. A copy of this agreement is available here.
Documentation requirements for establishment business
- The details of each Road Traffic Act Certificate should be made available to Lloyd's Ireland upon request as must any other such information as is necessary for Lloyd's Ireland to respond to the MIBI or the Irish Police.
- A sample electronic copy (showing signature) or a paper copy of the binding authority must be filed with Lloyd's Ireland prior to commencement of business. Please ensure that the broker lodges three copies with XIS for signing so that one copy will be forwarded to Lloyd's Ireland.
- The active underwriter of each syndicate must sign a standard indemnity in favour of Lloyd’s Ireland Representative Ltd in respect of RTA certificates, which must bear the address of Lloyd's Ireland.
- The syndicate or coverholder must file standard policy conditions with Lloyd's Ireland.
- The lead syndicate or coverholder must send a copy of every standard policy schedule to Lloyd's Ireland within 30 days of the first issuance of a policy. Where a non-standard policy has been issued, a copy of this must be sent by the lead syndicate or coverholder to Lloyd's Ireland within 30 days of the issuance of the policy. The purpose of these filings is to ensure that Lloyd’s Ireland can assemble in Ireland an accurate and complete record of all motor policies for the benefit of the Irish authorities.
Please see the Regulatory Reporting section and Market Bulletin Y4839 dated 13 November 2014 for details of reporting requirements in respect of motor business.
Procedures relating to Temporary Substitutions and Policy Suspensions
The Motor Insurers' Bureau of Ireland (MIBI) and Insurance Ireland (formerly the Irish Insurance Federation (IIF)) revised the procedures relating to Temporary Substitutions and Suspensions of Cover, with recommended effect from 1 November 2008. The revised procedures are as follows:
1. Temporary Substitutions: Following deliberations by the IIF Personal Insurances Committee and the MIBI Technical Claims Committee, it is recommended that insurers or persons acting on their behalf implement a Process Protocol Change to:
- Expressly advise the policyholder at the time of making the temporary substitution that there will be no cover on the vehicle from which cover is being substituted.
- Allow cover on a stolen vehicle to be reinstated as a temporary additional vehicle without charge for one working day without prior notification to the insurer when being collected from a Garda pound or storage place immediately following advice of its recovery.
- Allow cover on the original vehicle to be reinstated as a temporary additional vehicle without charge for one working day without prior notification to the insurer when being collected from a garage following repairs, maintenance or testing.
The onus of proof that cover on a stolen/original vehicle had been substituted before an accident date should rest with the insurer.
One working day includes anytime between 5pm on a Friday to 5pm on the following Monday, or if Monday is a public holiday, the end of the next business day.
2. Suspensions of Cover: In the event that an insurer formally suspends cover on a policy and can prove that this is the case, the insurer is not the insurer concerned if an accident occurs while cover is suspended. It is important that the insurer keeps a clear record of the dates involved. Any claims arising while cover is suspended will be dealt with by the MIBI.
MIBI Agreement and the MIBI No Claims Discount Protocol
The MIBI agreement of 2009 is an agreement between the Government of Ireland and insurers that are authorised to write motor vehicle liability risks located in Ireland (please find the latest version here). The provisions contained in the agreement and the subsequent NCD Protocol apply to members of MIBI in respect of motor third party liability insurance. Lloyd’s underwriters are a member of MIBI.
Under the MIBI agreement, the MIBI can be held liable for, and is to provide compensation for, victims of road accidents involving uninsured or stolen vehicles and unidentified or untraced drivers to the full extent of compulsory insurance in respect of injury to person and damage to property under the Road Traffic Act 1961.
The MIBI agreement also sets out the cases where MIBI can limit its liability. Section 4.4 states that where the claimant has received or is entitled to receive benefit or compensation from any other source, including under any insurance policy in respect of damage to property, the MIBI can deduct that amount from the sum payable by MIBI.
Pursuant to the MIBI agreement, MIBI has established a No Claims Discount Protocol (NCD Protocol), applicable to the members of MIBI. This protocol sets out that once an insured has made a claim under the damage section of his/her motor insurance policy, the insurer will not cancel or reduce the insured’s no claims discount. A copy of the NCD Protocol can be found here.
EU 4th Motor Directive claims representative
With effect from 1 January 2013, Lloyd's arrangements for the appointment of claims representatives under the EU 4th Motor Directive have changed. Lloyd's no longer appoints claims representatives on behalf of the Lloyd's market. Managing agents must appoint their own claims representatives and notify them to the UK information centre and the relevant overseas information centre. For further details, please refer to Market Bulletin Y4640 dated 30 November 2012.
When managing agents provide details of their claims representative to an information centre outside the UK, it must be made clear that the managing agent is a member of the Motor Insurers’ Bureau in the UK and that the claims representative will act on behalf of the managing agent and not on behalf of all Lloyd’s underwriters.
The contact details of the information centre in Ireland are as follows:
Motor Insurance Information Centre of Ireland
Motor Insurers’ Bureau of Ireland
30 Molesworth Street
Republic of Ireland
Tel: +353 1 676 9944
Fax: +353 1 676 1108
Information centre website