The Business Insurance Bureau does not specialise in domestic motor insurance, but does arrange motor fleet covers for clients company vehicles, be that cars, commercial vehicles or coaches. Motor fleet is simply the grouping of a number of vehicles together under one policy document, with a single renewal date for administrative convenience. The basic underwriting criteria is similar to that for motor insurance generally: the premium charged will vary with the types of vehicles and the drivers.
Driver information required will routinely be:
- Date of Birth
- Length of Driving Experience
- Motoring Convictions and
- Claims Experience
- Vehicle Information required will routinely be:
- Make and Model
- Engine Capacity/Gross Vehicle Wight
- Registration Number
- Value and Age
Insurers may also wish to take into account the code of where the vehicle will be stored overnight. Motor Fleet policies are generally available for groups of five vehicles and above and can incorporate both car and commercial vehicles. An important distinction of motor fleet is the claims experience and how this affects future premiums: A conventional domestic motor policy allows an individual driver to build up a no claims bonus in their own name.
A Motor Fleet policy is rewarded with a ‘fleet discount’ based on an annual claims experience – with a small number of vehicles and single large claim all drivers are punished.
It is sometimes beneficial with a small number of vehicles to have a multi vehicle motor policy that is ‘no claims bonus’ based. Another complication of recent times is that the taxation system has enveighed against company cars as a perk, and it is vital that ownership and use for company business issues are properly recorded at the start.
THE ROAD TRAFFIC ACT
The road traffic act was first introduced in the 1930’s and required that anyone driving a motor vehicle had to have insurance covering third party liability. Over the years the act has been amended to reflect modern driving habits and culture but the basic principles remain the same. It is illegal to drive a motor vehicle on costs and other costs incurred with the insurers consent a road or public place without the relevant insurance in place.
The law also makes provisions for payments to third parties even when the Insured is not complying with conditions of the policy. However, once a claim is settled with the third party the insurer can sue for recovery of their outlays.
1st EC MOTOR DIRECTIVE
When the UK joined the EC it became a signatory of the Directive and is designed to aid international travel between member countries. It is agreed that the motor insurance is automatically extended to cover the minimum insurance requirements whilst the vehicle is being driven in that country. Again, the directive has been updated (now the 5th EU Motor Directive) and amended regularly to ensure uniform levels of cover and that claims are dealt with in a timely efficient manner.
THE REHABILITATION OF OFFENDERS ACT 1974
The principle effect of this legislation is to prevent criminal offences from being considered in assessment against an individual for an indefinite period of time. For insurance purposes the important periods for driving offences are:
- Five years in the event of a Fine
- Four years in the event of an endorsement (except drink driving offences)
- In the event of a driving suspension the rehabilitation ends when the suspension ends, but license endorsements continue as above
- If the offence is more serious (i.e. drink driving) or you are unsure if you need to declare a conviction please speak to your advisor
MOTOR INSURANCE DATABASE
The Motor Insurance Database was originally established to capture details of individually insured vehicles but has subsequently been extended to include fleet risks and fleet operators are responsible for ensuring their details are logged and up to date. Current regulations state that all changes have to be updated within seven days of the change taking place.
All claims must be notified to the insurer as soon as possible and all relevant information provided. In the event of an accident, no admission of liability is to be made to any party.
The insured is required to take reasonable care of the vehicle to safeguard it from loss and to maintain it in a roadworthy condition.
Although there are exceptions to individual parts of the policy; we have listed those applying to the whole policy;
- Liability is excluded if the vehicle is driven by a person not covered by the policy.
- Liability is excluded if the vehicle is being used for a purpose other than that covered by the policy.
- Anyone driving the vehicles must be in possession of a valid driving licence and in compliance with its restrictions.
To ensure that all drivers have valid driving licenses, Insurers are notified of relevant criminal convictions, all vehicles are maintained and in good condition. The Motor Insurance Database is updated in the event of any changes to your vehicles, In the event of an accident, never admit liability.