The Business Insurance Bureau

Motor Fleet Insurance

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.

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Introduction

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:

Name, Date of Birth, Length of Driving Experience, Motoring Convictions and Claims Experience

Vehicle Information required will routinely be:

Type, Make and Model, Engine Capacity/Gross Vehicle Weight, 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.

Frequently Asked Questions

Do I qualify for a Fleet?

If you are a UK business with 3 or more vehicles then ‘yes’. There are no restrictions to the type of business which can have a fleet policy.

What vehicles can I insure under my fleet policy?

Any vehicle which is owned by & registered to the company. This will also include hired-in vehicles and loan/courtesy car vehicles. Vehicles leased under a lease agreement to the company or one of its directors can also be added.

Are all Fleet policies the same?

No. Some fleet policies offer added value benefits and cover extensions that may be a useful addition to your cover. Others may offer assistance with risk management, optional Breakdown Cover or driver training as part of the package. There are different levels of cover options available and others may be a fleet declaration type policy. As experts in Motor Fleet insurance we can help you find the best policy to suit your requirements.

Who can drive?

Most fleet policies are usually arranged on an Any Authorised Driver basis which means that anyone can drive with the permission of the company/directors.

However there are discounts available if you wish to restrict driving either to Named Drivers only or Any Driver but with a driver age restriction (e.g. Any Driver over 30).

Younger drivers under 25, if included, will usually have an increased excess applicable when they are driving. 

Convictions

Drivers who have serious convictions on their driving licence MUST be referred to insurers before allowing them to drive.

These would include any conviction code that begins with the following letters: AC, BA, DD, DR, IN, MS, NE, TT, UT & XX. We recommend that all fleet operators carry out regular licence audits and take photocopies of all drivers’ licences at least once a year.

Does my fleet policy cover me to drive any vehicle?

No, you can only drive vehicles that are noted on the policy. Fleet policies do not cover driving other cars on a third party basis

Plant and Special Types?

One benefit of a motor fleet policy is that different types of vehicles can all be placed on the same policy. Construction and agricultural plant such as tractors, JCB’s and excavators, and special types of vehicles – fork lift trucks, trailers, horseboxes and even road sweepers can all be accommodated. Policies can also be extended to include the Tool of Trade risk (sometimes known as Third Party Working Risk).

It is important to consider where your Plant will be used as the current definition of a “Road” is very wide and will include most places where the public have access including car parks, etc.

What about my personal vehicles?

Director’s own vehicles can usually be included in a company fleet as long as they are registered to the directors personally. A special motor certificate will need to be issued for these vehicles showing the registered owner’s name so they will need to be declared to us.

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What's Covered?

Fleet Discount

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 Rehabilition 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 Databse

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.

General Conditions

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.

General Exceptions

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.

Your Duty

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.

Making it cheaper, by doing it right™

Doing it right is more important than making it cheaper, but we make it cheaper because we do it right.

Working With Us

Which Services will we Provide you with

The Business Insurance Bureau conducts both client and market research to identify solutions to the needs of an almost exclusively business clientele. We will make a recommendation once we have assessed your demands and needs.

Payment Terms

All premiums due to insurers must normally be paid by you on or before the date that cover commences. Where alternative methods of payment are available these will be discussed with you so that arrangements can be put in place by the due date.

Confidentiality & Security

We are registered with the Data Protection Registrar. We will ensure that any information obtained from you is treated by us and anyone else involved in arranging, considering to arrange or managing your insurance, as Strictly Private and Confidential. We will not provide your information to anyone else unless we:
have your permission to do so, or -are required to by the FCA, or -are required to do so by law, or -are required to do so in the normal course of arranging or negotiating and maintaining, or renewing financial services products which we may from time to time approve.We take appropriate steps to ensure the security of any money, documents, other property or information handled or held on your behalf.

All information in any form, with the exception of policy documents and certificates issued on behalf of insurers and supplied by us, to you, should be treated as Strictly Private and Confidential and not be released directly or indirectly to any other party, without our explicit consent.

Note: in transacting your insurances with The Business Insurance Bureau, you are deemed to have accepted our Terms of Business. Your accepting of these Terms of Business does not affect your statutory rights.

Claims

You must notify us as soon as possible of a claim and circumstances which may give rise to a claim. In the event of a claim you should contact this office and we will promptly advise you and if appropriate, issue you with a claim form and pass all details to your insurer. You should not admit liability or agree to any course of action, other than emergency measures carried out to minimise the loss, until you have an agreement from your insurer. We will remit claims payments to you as soon as possible after they have been received on your behalf. In the event that an insurer becomes insolvent or delays making settlement we do not accept liability for any unpaid amounts.

Cancellation Rights

You would have the right to cancel a policy within 14 days of its inception or upon receipt of the policy documentation whichever is the later. You would as a Consumer and without providing a reason, cancel the policy by confirming this is in writing to the address of our office through which your policy was placed. Any policy documentation and in particular any legal document, i.e. Certificate of Motor Insurance, Employers Liability Certificate, MUST be returned with your instruction to cancel. By exercising your right to cancel the policy, you are withdrawing from the contract of insurance.

Duration & Termination

Our services may be terminated without cause or penalty by giving one months’ notice in writing. In the event that our services are terminated by you other than at the expiry of the policy we will be entitled to retain any fees and all of the brokerage payable. The responsibility for handling claims reported after the date of termination shall in the absence of an express agreement be the responsibility of the party taking over the role.

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