Fife MP urges insurance firms to play fair with motorists

Neale Hanvey, MP for Kirkcaldy and Cowdenbeath, has signed a cross-party letter to the Treasury calling for action to be taken to compel motor insurance companies to repay some or, where appropriate, all premiums to customers.

He is one of 27 politicians from seven different political parties, calling for action in response to the 50 per cent drop in insurance claims as well as the huge drop in the number of people using their cars; down some 75 per cent during lockdown.

Insurance companies are currently set to make a £1 billion profit off the back of motorists who are rightly keeping off the roads during lockdown.

The MPs say they would not make a loss from this necessary and temporary adjustment.

Mr Hanvey said: “It’s brilliant that people are doing the right thing and staying off the roads.

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“But that means insurance companies are making huge profits as the number of claims plummet. This isn’t right. No one should profit from the pandemic.

“It’s good to see some insurers are now saying they will offer partial customer refunds, although many are still failing to reward the trust and loyalty of their customers.

“In fact, we have seen pay-outs to shareholders to the tune of millions rather than refunds to policyholders unable to use their vehicles as normal.

"Colleagues and I across the political spectrum are therefore urging the UK Government to take steps to ensure that, rather than profiting from the pandemic, all motor insurance companies play a part in supporting the millions of households in financial crisis as a result of coronavirus.

“If insurance companies won’t voluntarily do the right thing and refund a percentage of people's annual premiums, then the UK Government must compel them to do so."

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