Bikers set up action group in wake of insurance premium rise

The substantial increase in insurance cover for motorcycles has led to the setting up of a lobby group, the Motorcycle Insurance Action Group, by motorcycle enthusiasts David Grech, Tony Borg and Karmenu Grixti.

Most bikes cost anything between Lm2,000 and Lm10,000.

Motorcyclists argue that although they understand that insurance premiums would have to go up to cover pillion rider liability, many believe that the increase - in cases by over four times - is charged across the board without the possibility of waivers as is done in other countries, Mr Grech said yesterday.

The group is building a database of those motorcyclists who are protesting against the new premiums. Bike owners are being asked to contact the group to give their name, telephone number, age and the type of motorcycles they own.

"Once a database with about 2,000 owners is compiled we plan to meet the stakeholders in this sector, including the Malta Insurance Association and the Minister of Transport and the Transport Authority to thrash out these complaints," Mr Grech said.

"If nothing comes out of these meetings, the idea is to contact a foreign insurance firm to see whether they would be prepared to issue cover for Maltese bikers.

"Motorcycle owners usually take out insurance cover on one or two cars at least, a house, and a garage, not to mention others who own a business and a boat, so the overall premium would be worthwhile.

"If one were to estimate that insurance owners would on average have to pay out an additional Lm100 over the 'old' rates, insurance firms would be netting an extra Lm1.5 million when one takes into account that there are about 15,000 registered machines," Mr Grech said.

Motorcycle owners are being told by their insurance agents that the increase is being implemented because of EU membership, to cover the pillion rider and the Green Card that one requires to take one's bike overseas. Up till now a green card could cost anything between Lm35 and Lm55.

One point which was not being taken into consideration, for instance, was that no one would dream of going abroad on one of the smaller bikes, so why should owners of such machines be made to take out foreign travel cover for their bike?

Another thing is that those who own more than one bike would also be asked to buy insurance for all their bikes to cover the pillion rider when an owner will be riding only one of the bikes at any one time.

The owners of one-seater bikes are also expected to pay for the cover of a pillion rider they cannot carry. Passenger liability in the UK is a mere £15, Mr Grech said.

Mr Grixti said that anyone who abused the law by taking on a pillion rider when not covered by insurance, or take on more than one passenger, would have to face the possible consequences of his action.

"The majority of owners insure their machines in their name as only one driver, so what's the point of making owners pay the cover for the pillion for every bike they have?

"With only third party cover, there are not many claims that one can file with insurance companies.

"Additionally, why do insurance companies not allow a no-claim bonus to bikers? I have been riding motorcycles for the past 25 years and I have never filed a claim.

"Car owners benefit from a no-claim bonus up to 65 per cent of the premium. Why are bike owners not given the same benefit?" Mr Grech asked.

Mr Borg argued that such high premiums went directly against the government's and the EU's stand to curtail air pollution and traffic congestion.

"Most motorcycle owners have a car, a bike to go to work with and a bike to take out on Sundays and public holidays. Pushing up premiums sky high will deter people from buying a bike and will make owners remove the number plates and garage their bikes.

"On the more expensive 'Sunday' bike, owners will be charged high premiums to take their bikes out on 60 days of a year," Mr Borg noted.

The group is objecting to the way insurance firms are classifying machines according to engine capacity when insurers in Europe take into account also the break horsepower and the bike model.

"Our aim is to strike an agreement in Malta once insurance premiums are scaled down to an acceptable level. We intend to meet also the Malta Financial Services Authority to see how justified these increases are," Mr Borg said.

Motorcycle owners who would like to be included in the database to further make their case against insurance hikes may contact David Grech on 9923 2015; Karmenu Grixti on 7970 6431 and Tony Borg on 9949 9877 or through e-mail: hosuyaka@hotmail.com.