Insurance companies should have ‘grace period’

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A judge has said the laws in relation to insurance companies should be changed.

District Judge, Barney McElholm, said insurance companies ‘should not be allowed’ to cancel policies after one missed payment and there ‘should be a one month grace period’ instead.

The judge made the comment as a woman admitted having no insurance because her monthly direct debit was not paid because of insufficient funds in her bank account.

Lisa Moore, of St. Eithne’s Park, pleaded guilty to having no insurance and failing to provide her driving licence on January 31.

Derry Magistrate’s Court heard the insurance policy was cancelled due to non-payment.

Moore was stopped by police in the Ederowen Park area of Galliagh and it was brought to her attention that she had no insurance.

She was given seven days to produce her driving licence to the police station and she failed to do so.

Defence solicitor Gareth McFadden said his client was unaware the policy had been cancelled and when she did, she rectified the situation immediately.

He added that there was insufficient funds in the defendant’s account to pay for the insurance.

Mr. McFadden said the defendant has no previous convictions and a clean driving licence.

Judge McElholm fined Moore a total of £225 and imposed six penalty points.

He also imposed a £15 offender levy.