MOTOR INSURANCE TIME FOR REFORM
04 March 2004 - MAG UK

The Motorcycle Action Group (MAG) has launched a campaign for total transparency in the motor insurance market.

MAG has asked its 53,000 members nation-wide to write to their MPs urging them to support MAG’s demands which are as follows:

Disclosure by insurance companies of the estimated profit margin on each individual motor insurance policy at the time the quotation is given, in a manner that conveys a fair and understandable picture to the would-be
policyholder.

Disclosure of commissions by motor insurance brokers at the time a quotation is given.

Insurers to be compelled by law to publicly disclose premium income and claim expenses showing separately expenses for:

Third-party personal injury claims
Third-party property damage claims
Own vehicle damage claims
Theft claims

Amounts paid in legal fees and related expenses, court costs etc.

Insurers’ internal administration costs

Insurers to be compelled by law to offer Third Party Only cover, theft cover, and own-bike damage cover as separate items.

nb: All MPS details are available from www.locata.co.uk/commons

MAG point out that:

Motor insurance is compulsory. If you don’t buy it then you can’t drive. If you do drive without insurance you can be fined, have your license endorsed, be banned from driving or even imprisoned. Given the element of compulsion the Government has a duty to its citizens to regulate the profits of insurers. The most efficient means of regulation is a regime of enforced transparency, policed by government regulation, so you the consumer can make an informed choice when you buy a policy.

MAG’s latest campaign comes on the back of research to assess riders’ experiences of motorcycle insurance and theft which MAG conducted by means of questionnaires with help from MAG Netherlands and The National Association of Bikers with a Disability.

www.mag-uk.org

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