Stolen vehicles — insurance answer
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• I was interested to read your article "Fighting back" (CM 15-21 Aug) and 11 have every sympathy with the three hauliers who have been victims of professional theft gangs; certainly the instances of thefts are increasing.
In each of the cases illustrated there is implied or actual criticism of the insurers involved either on the question of the amounts paid in compensation, the delay in settlement or the uninsured loss by reason of the vehicle being off the road. Without details of the individual circumstances it would be wrong for me to comment on the specific issues raised, but your article does clearly illustrate how important it is to obtain the correct insurance and not merely assume that "comprehensive" cover means all risks.
Consider the three insurance aspects raised in the article:
Firstly, the amount paid by insurers in compensation for the stolen vehicle. The majority of insurers pay out the market value of the vehicle at the time of the loss with the inherent problems of proving the value falling on the haulier. Depreciation is most marked within the first year of a vehicle's life and far more problems occur with new or newer vehicles than those that have worked in excess of a year. This is clearly illustrated in the case of the Somerset haulier who stands to lose £12,000 — the difference between the cost of a replacement vehicle and the amount his insurers are willing to pay. The Roadway Commercial Vehicle insurance policy has provided reinstalment cover (new replacement vehicle) in the first year of a vehicle's life since 1983.
Secondly, the question of delay in settlement. I am not in any way being critical of the insurers mentioned in your article as I do not know the individual circumstances, but the message to your readers is quite clear. Some delay is inevitable. The authorities must be given the opportunity to recover the stolen vehicle but in return insurers must recognise that delay to the haulier is loss of business and revenue and they should react more quickly. How many of your readers ask their insurers how long they will have to wait for settlement when they arrange their "comprehensive" insurance? Do your readers always choose an insurance company well versed in the needs of the haulage industry?
Thirdly, the loss of revenue and business during the period the vehicle is stolen and the insurers pay the claim enabling a replacement vehicle to be acquired. Your "comprehensive" policy does not pay these loss of
earnings and you are unlikely to be able to recover them from the thieves even if they are apprehended. Insurance cover known as Roadway Downtime is available at a very modest cost which will provide a weekly amount (agreed at inception of the policy) to cover the period the vehicle is not working. If insurers know they have to pay out under Roadway Downtime, I respectfully suggest that this
encourages them to settle the theft claim with the minimum of delay.
Your readers can mitigate their losses in the unfortunate circumstances you describe, but perhaps they need to take a little more care when arranging their insurance cover and establish clearly what insurance they are buying. B Johnson, Managing director,
RHA Insurance Services.