A judge has advised that everyone should check their insurance policy small print to ensure their policies aren’t unintentionally lapsed.
Judge James Faughnan lambasted insurance companies for their inflexible bureaucracy at a sitting of Tuam District Court, saying that he estimated 25 per cent of motor insurance cases coming before him were the result of bureaucratic mix-ups and confusing documentation issued by many insurance companies.
“I nearly got caught myself,” he said, referring to a practice of lapsing policies, including policies that have been fully paid for, because of details of no-claims bonus records were not forwarded in time.
Judge Faughnan said insurance companies should arrange to have all necessary paperwork in place before they issue policies, not take the money first and then try and deny liability because some clause in the small print facilitates this.
The judge made his comments when dealing with defendant, Dervla Hurley, Ballincurrey, Glinsk, Ballymoe, Co Galway, who was before the court charged with driving without insurance.
Martina Moran solicitor (defending ) pleaded that her client had been living in Dubai and when she returned she assumed her cover was properly in place until she was stopped by Gardaí on February 12, 2025 at Durrow, Ballymoe who made her aware that her policy was no longer in place. It transpired she hadn’t forwarded her no-claims information and the company lapsed her policy, Ms Moran explained.
“They take your money, give you insurance, you get informed that you’re covered but unless you send in your no-claims history they take it away again,” Judge Faughnan said. “This is wrong and needs to be dealt with as people are driving around assuming they have the insurance they have paid for, but this is not always the case. I nearly got caught myself.” The judge added that he estimated 25 per cent of no-insurance claims coming before him were down to policies being lapsed for similar reasons.
Emphasising the seriousness of this he pointed to the possible consequences for the defendant who works in childcare if she had a criminal conviction on her record.
“All information needed by insurance companies should be obtained in advance and an end put to these ambiguities. What some insurance companies are doing either unintentionally or by design as a ploy of deny liability is simply wrong and this matter needs to be addressed,” Judge Faughnan said.
He struck out the charge against Ms Hurley on condition she make a €300 contribution to Tuam Lions Club.
