Editorial

Given the current ongoing controversy over the hike in motorcycle insurance, bikers must have noted, with dismay, the different approaches the government is able to adopt with different sectors of society.

The government's attitude with regard to owners of animal-drawn carriages has surely not escaped their attention. Just days after The Times reported new rules in the offing for animal-drawn vehicles, being drafted by the Animal Welfare Council, which must have caused concern to the owners because of the apparently tough proposals being considered, the government comes out saying there was no cause "for alarm". The government "does not have to accept these recommendations", the Environment Ministry said.

While assuring owners of animal-drawn vehicles it was not bound to accept the rules being drawn up by the council, and the Malta Transport Authority to boot, the government fails to take a stand - any stand - in the case of insurance companies, accused by the Consumers' Association of having a tendency to form a cartel, that are quoting premiums to motorcyclists which are far higher than what is charged abroad. Even before joining, the European Union is getting a bad name for insurance companies are blaming the high increases on new requirements after membership - though the higher rates are being applied already.

The new requirements are that pillion riders will now be insured and motorcyclists will be able to travel to Europe with their machines without the necessity of a Green Card, which insures them for travel in Europe. Pillion riders have been riding bikes with their friends, boyfriends or partners for as long as there have been motorcycles. It has not been thought unavoidably necessary so far to have them insured. The reason is that bikers do not set out to kill their pillion rider.

Now because the pillion rider is to be insured, which is correct, insurance companies are applying rates that are four or more times higher than has been the case to date. Is this justified? For a half rise of risk, they apply a rise of four or more times in premium. Because pillion riders are, to an extent, insured. In an accident with a car, for example, the rider and his passenger are both insured if the fault lies with the car driver. And bikers argue that in a collision, because they handle their machines with care, it is usually the other driver who is to blame. The insurers, and the government, have not given any figures to counter that. They have given no figures at all.

Motorcyclists are not the only ones to face insurance rises. So are car owners, though not to the extent of bikers.

There is supposed to be an "authority" to control insurers, the Malta Financial Services Authority. But to date "the authority" has been busy deliberating, to draw up "an explanation of the facts at issue". They must be profound facts indeed, for the authority to not have come out with its "explanation" so far.

Bikers' only solace is that both the Labour opposition and Alternattiva Demokratika have expressed themselves favourably in the bikers' cause. They cannot understand why the government is allowing the insurance companies to have it their way without any apparent justification.