A bikers' group says 1,500 couriers are facing the loss of their jobs as a result of an insurance company's decision to stop giving motorcyclists cover.
One of the State's biggest insurers, Hibernian, has stopped offering cover to motorcyclists because the claims from this element of its business have resulted in it losing money.
Last night, Bike Ireland, an organisation that represents motorcyclists, claimed that the company's decision would leave 1,500 motorcycle couriers and fast food delivery staff out of work, because they would not be able to get insurance.
In a statement, the organisation said that two brokers who offer cover to motorcyclists, Aon and Carole Nash, do not provide insurance for business activities.
"These people are being denied future contract employment because they will not be insured under private policies for business," Bike Ireland claimed in a statement.
Hibernian announced its intention to pull out of the market two months ago. It stopped taking on new policies on July 1st, and will not be renewing existing policies from the beginning of August. It began informing motorcycle customers four weeks ago as their policies came up for renewal.
When it originally announced its withdrawal, the company said that it wanted reform of the regulations governing bike riding and training, and better enforcement of the law that bans motorcyclists with provisional licences from carrying pillion passengers. Around 70 per cent of motor cyclists drive with provisional licences, and many carry passengers.
Under EU law, insurers are still liable if illegally carried pillion passengers are injured. Last night a spokesman said that the company had been flagging the need for reform in these areas for some time. "Unfortunately there has not been any reform in these areas and as a result Hibernian has continued to incur losses in this sector," he said.
Bike Ireland said that the Oireachtas should change the provisions of the Road Traffic Act to allow motorcyclists to get insurance from companies that do not have offices in the State.
