New c.v. policies from Royal
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• The Royal Insurance Group has announced a new range of commercial vehicle policies from January 1. These are said to offer substantially improved cover with simplified proposals and policies in booklet form without the small print.
The new policies provide for the changed licensing patterns foreshadowed in the ROAD Transport Act, 1968 and, by including passenger liability, take account of' legislation which is expected shortly to make passenger insurance compulsory for all vehicles. Other standard benefits are—an increase in the third party property damage limit from £50,000 to £250,000, £1,000 manslaughter costs, liability for damage to roads and bridges by weight of the vehicle, windscreen damage up to £50 free from, application of excess or loss of no claim discount.
Furthermore, the no claim discount scale has been increased from 10/15/20 per cent to 10 /20 /30 per cent over three years. An initial discount of 10 per cent will be al/owed to new owners of small goods vehicles who, although not entitled to a no claim discount, can show two year accident and conviction free motoring.
For small goods vehicles, higher premiums for the wider cover are balanced by the higher no claim discount. Owners who have been paying additional premiums in the past for extensions of cover which are now "standardcould, says the Royal, find they actually pay less. In addition, use for hire is now included in the basic cover without extra charge.
For the heavier goods vehicles there are rather higher increases on account of steadily rising claims costs. The Royal point out that this is the first upward revision in commercial vehicle premium rates since 1963 and in the intervening six years the average cost of claims has more than doubled.
Royal has decided to issue blanket certificates for most goods carrying vehicles, thus avoiding the need for cover notes and ensuring that replacement vehicles are covered subject to notice to the company within seven days of change.