Premiums halved in new cover plan
Page 25
If you've noticed an error in this article please click here to report it so we can fix it.
• General and Commercial Motor Insurance Company—a broker oriented company and a member of the Vehicle and General group—announces revised terms and rating structures for commercial vehicles which can mean a reduction in premium of nearly 65 per cent in some cases.
A spokesman for General and Commercial said: "In assessing premiums we have felt for some time that carriers' licences have played too prominent a part, and at long last we are able to place them in their proper perspective when it comes to assessing premium rates. In some cases we are completely ignoring them. This, together with our bonus scheme and non-participation in knock-for-knock agreements, makes us one of the most competitive companies insuring commercial vehicles."
Under the new structures vehicles up to and including five tons carrying capacity are rated according to maximum load and garaging area. This completely ignores the carrier's licence factor.
For vehicles of six tons carrying capacity and over there are two rating tables. One is for unrestricted A licence vehicles, which is based on their maximum load capacity and garaging area. The other is for all other types of carrier's licence, with rates based on the maximum load carrying capacity and garaging area. Modification of standard terms means that for vehicles up to five tons carrying capacity the policy permits any licensed driver over 23 years old to drive, subject to no excess. Drivers under 23 are subject to a £15 accidental damage excess. Passenger liability is included free of charge subject to General and Commercial's liability being restricted to a maximum number of three persons in fixed seats.
For vehicles of six tons carrying capacity and over, standard terms for all carriers' licences and unrestricted A licences fall into two categories. The first includes vehicles of more than five tons capacity and up to seven tons, while the other covers all vehicles of eight tons and over.
In the first category the policy permits any licensed driver to drive subject to no excess for drivers over 23. A £25 accidental damages applies in the case of comprehensive policies, and £25 excess all sections for third party or third party fire and theft cover. Both these excesses operate for drivers under 23 years. And passenger liability is subject to the same conditions as for vehicles up to five tons capacity.
For vehicles of eight tons capacity and over, the age limit of the driver is raised to 25 years, and for drivers under 25 the excess is £50 subject to the same conditions as already mentioned.