Hundreds of drivers are being refunded after Axa Insurance overcharged them for their motor insurance.

The company said it has written to all customers impacted by what it said was a “historical systems-based error” and has offered them refunds and compensation.

It is understood the error saw the company failing to recognise no-claims bonuses for some drivers while calculating premiums.

In a statement, the company said around 400 customers were impacted.

“In March 2024 we wrote to each of the impacted customers apologising for the error and confirming that a refund was being processed (which also included a compensatory payment) and would be paid in the coming days,” it said.

The company said the error has since been resolved and the average amount refunded to impacted customers was €163.

“AXA is fully focused on our customers and take such matters incredibly seriously,” reads the company statement.

“We are fully committed to resolving any issue impacting our customers in an expedient, transparent and sympathetic manner.”

It comes just days after the Central Bank warned that insurance premiums were continuing to rise despite a major drop in the number of claims made against them.

The report also noted that profit margins for insurance companies have increased by more than 50% in the past year.

Speaking to Newstalk after the report was published the Minister of State for Company Regulation Dara Calleary said people can expect to see insurance premiums falling “from this year on”.