Insurance of Buses on Loan ' Or Hire R EVISED arrangements hare
Page 16
If you've noticed an error in this article please click here to report it so we can fix it.
been agreed with the Accident Offices Association, Lloyd's Motor Underwriters' Association and the independent insurance companies, to meet difficulties which would otherwise arise when; in times of emergency, public-service vehicles are on loan or hire under mutual aid schemes, or used by their owners for work or in 'areas outside the scope of the owners' insnTance
(a) Such vehicles should, where practicable, be temporarily attached to the fleet of an operator authorizedto run services of the type' upon which the hired vehicle will be used in the new area (b) If that operator be insured for his own fleet, he should give his insurer particulars of the attached vehicles, so that cover and premium may be . arranged: •
(c) 'The insurer will hold him covered from the date when he operates the vehicles, subject to receipbof notice within seven days. If the operator's policy covers some vehicles for.compre lkensive and others for only third-party insurance, the former • will be given and charged for unless notice be received that 'only, third-party cover is required. The premium will be 1/52nd per week ' of the annual rate paid. 'for equivalent cover—minimum one week.
(d) Where the operator is exempted from outside insurance, these arrangements will not apply, but he will be responsible for all claims arising from his use of such vehicles.
(e), If vehicles cannot be transferred. to other areas and the owner operates them,. at the' request of the R.T.C., on services for which his policy does not provide cover, he must notify his insurer and, as in cases under (c), he will be granted the required class of insurance iron the date of commencement, provided notice be received within a week, and that he agrees to pay the additional premium.
(f) Where"such vehicles. with .drivers be lent as contract carriages, and liability for accidents remains with the
lender, he must, where his insurance does not give cover, 'notify his insurer, when the-provisions of (e) will apply.
(g) While a vehicle is in transit in accordance with these arrangements, the owner's policy will operate on the outward jouiney, and, similarly, on the return journey. If the borrower collects and/or returns the vehicle, his policy operates while the vehicld is under his control.
(h) If the driver is to be on loan add return, the oWner of the vehicle remains liable for risks'. under the Workmen's Compensation Act, and should be covered,
Where a; vehicle is operated' under any of these arrangements as a stage or express carriage, the holder of the road service licenceshould obtain thirdparty insurance. When used as a contract carriage, the holder of the p.s.v. licence should adopt this responsibility.
Operators who take vehicles on hire or loan will be responsible for damage sustained by them and -should obtain full cover..