LONDON, April 22 (Reuters) - British motor insurers should
repay all or some of their premiums to customers because of a
steep drop in car use and claims due to the coronavirus
lockdown, a group of lawmakers said.
The lawmakers said car insurers had reported an almost 50%
drop in claims during the lockdown and the British government
had said driving was down by 75%, with insurers calculated to
make one billion pounds ($1.24 billion) profit from the drop in
claims.
"We do not need to restate all of the financial challenges
faced by families during these desperately difficult times," the
cross-party group of 27 members of parliament - mainly from
opposition parties - said in a letter to Britain's finance
minister Rishi Sunak dated April 18 and seen by Reuters.
"For this reason, we, MPs from all political parties, would
suggest to you that HM Treasury take action to ensure that UK
insurance companies repay some, or where appropriate all, of
premiums to customers."
Major U.S. motor insurers are offering credit to auto and
motorcycle policyholders following a decline in driving, as most
Americans stay at home under widespread orders to help contain
the spread of the novel coronavirus.
In Britain, insurer Admiral said on Tuesday it
would give back 110 million pounds - or 25 pounds per vehicle -
to car and van policyholders due to the lockdown.
Hastings said it had passed on a number of benefits
to customers, including price reductions and fee waivers, as
well as financial support for those customers suffering
difficulties meeting payments.
Direct Line said it had introduced support measures
to help customers and RSA has said customers could
update their policies and potentially lower their premiums.
The Association of British Insurers was not immediately
available for comment.
($1 = 0.8097 pounds)
(Reporting by Carolyn Cohn and Muvija M. Editing by Jane
Merriman)
