Bikers win reprieve on insurance rates

The Finance Ministry has agreed to postpone the hike in motorcycle insurance rates by two weeks, whether because it heeded the bikers' pleas or due to the threats of the Knesset Finance Committee and Knesset Economics Committee.

Finance officials say the delay will give them time to achieve a meeting of minds with the heads of the two Knesset committees.

The Finance officials also stated that this will be the last delay. Now the higher rates are supposed to come into force on November 15, until which time the bikers' protests are likely to continue. Last month riders slowed down traffic on the Ayalon Highway, a central Tel Aviv traffic artery, to a crawl. Two weeks ago the bikers staged a "naked ride" or, more accurately, a group ride in their underwear, protesting that insurance was so costly they couldn't afford any other coverage.

Israel's bikers had found an ally in Moshe Gafni, chairman of the Finance Committee, who said the new rates were unreasonably high. He threatened to toss out any motions brought before him by Finance Ministry officials from the capital markets and insurance divisions, unless they reconsidered their position on the insurance rates for bikers. Gafni backed the bikers' argument that most of them were from the lower echelons of society and they couldn't afford the higher rates.

The uncertainty has brought the insurance companies to develop creative ideas to keep people coming in. For example, Direct Insurance promises to return the difference to bikers if the rates are raised - and the reform is later canceled.

The decision to raise rates for bikers was made by Yadin Antebi, the commissioner of insurance and capital markets at the Finance Ministry. His main argument was that car drivers were subsidizing bikers, who ran higher risks and who didn't pay rates commensurate with the cost of caring for them after accidents.

Eliko Eljam, chairman of the committee formed to fight the decree, stated yesterday that the Finance Ministry's decision was the result of the public protest after the reform was announced. "The entire public, riders and drivers alike, opposes the commissioner's decision and the damage to motorcycle drivers," he said. "We thank all the Knesset members who have helped us so far, and also [thank] the finance minister for acceding to the request of the Finance Committee."