Contractors face ‘soaring’ machinery insurance premiums

Agricultural contractors are facing soaring insurance costs, says Michael Moroney, Chief Executive Officer of the association of Farm & Forestry Contractors in Ireland (FCI).

Speaking following his appointment to his new post with FCI, Moroney said that big increases are being quoted to contractors across the country at the moment.

“Some of these increases are quite significant, up to 30%.”

The FCI is holding a number of meetings around the country over the coming days, to quantify the extent of the problem. Members feel aggrieved, because there is no real or substantial evidence to indicate that the number or size of claims across the sector have increased.

Nor, says Moroney, is there any evidence to suggest that the increased premiums are linked to any perceived increase in risk.

FCI members are getting increasingly concerned about the situation. Ultimately, any large increase in a contractor’s overheads must be passed onto customers – in this case farmers. Farmers are also facing increases in insurance costs.

Tackling rising motor insurance

Meanwhile, there appears to be no end in sight to the upward spiral in motor (car) insurance premiums. However, insurance providers may soon have to give valid reasons for ongoing premium hikes.

The recommendation was contained in a report published this month by a government working group, which was established to probe rising car insurance costs across the state.

The report contained a number of protocols, all of which must be agreed later this year.

Commenting on the report, Minister of State for Financial Services Eoghan Murphy said that the new measures being introduced will mean insurance companies must explain to the driver why their premium might have gone up – even in a situation where they might not have any additional penalty points or they haven’t had a claim made against them – to explain exactly why they got that increase.