Claims boost CV premium
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• Swingeing changes in the handling of insurance claims from the start of June could trier steep rise in commercial vehicle insurance over the next year.
Under the former system CV operators had their collisions subsidised by other motorists. The "knock-for-knock" system meant that insurance companies bore the cost of repairs to vehi
cies they insured, regardless of blame so the cost of repairs to a car which was damaged by a truck would invariably be borne by the car's insurers But now Norwich Union, one of the four major companies still in CV insurance, has broken ranks by withdrawing from the knock-for-knock agreement. The effect, says NU, is that "premiums will be collected on a fairer with those who cause claims paying more in urns". Rival insurers believ( will inevitably go up. Eagli which is continuing to knock-for-knock, says: "C costs will increase b( claims handling will b more expensive and more ( will go to litigation."