New legislation which will stop the public from being ripped off by insurance companies became law on Tuesday.
Sinn Fein’s Bill, described by industry experts as “the most radical change in insurance law in centuries”, was officially signed by President Michael D Higgins.
It is hoped the Consumer Insurance Contracts Bill will make insurance more affordable and stop small firms from closing because they can’t afford spiralling premiums.
Sinn Fein TD Sean Crowe said the legislation will reform insurance contracts, increase transparency and shift the balance in favour of the consumer.
He said the Alliance for Insurance Reform has described the new laws as a “game-changer”.
Mr Crowe said: “Rip-off insurance costs are squeezing incomes and closing down businesses.
“People are seeing their premiums rocketing year on year and the majority of cases are without anyone making a claim or changing the risk factor on their policy.
“The insurance market isn’t working for policyholders and too little has been done to hold the industry to account and reduce costs.
"I have been contacted by the Naionra in Scoil Chaitlin Maude, Killinarden Community Centre and the Fettercairn Youth Horse Project who are all struggling to keep their doors open after extortionate increases in their insurance premiums.”
The Government was recently forced to help creches and child-minding facilities pay insurance costs to prevent them closing.
The Dublin South West politician said the Bill will “shift the balance in favour of policyholders”.
He added: “It would require companies to inform consumers of the past five years of premiums paid by customers and claims paid to customers and third parties for all non-life insurance contracts.
“From now on, where there is uncertainty in any document or contract, the rule of law and interpretation in favour of the consumer will prevail.
“It will be up to the insurer to ask the relevant questions when a consumer or business takes out a policy, reversing the current status quo which places the burden and responsibility on the consumer to volunteer information.
“It will have a huge impact on the industry.”
