Insurance for operators
Page 57
If you've noticed an error in this article please click here to report it so we can fix it.
IE LATEST available RoSPA lures make shocking reading over 86,000 drivers killed or lured on our roads in 1978. ith rising numbers of vehicles I the roads the chances of a ad accident are ever-inaasing.
If you're uninsured the finan)I consequences could be grim deed.
As far as the industry is conrned, the driver is obviously at eater risk than other members the staff. If he is injured badly ough to be off work, that uld prove a costly business. But there's now an insurance lich could be of particular in-est to employers. Brought out the Commercial Union it is fled the Driver's Accident Inranee. The pay-out follows a ad accident which causes ath or serious injury to your iver.
As the employer, you may use a claim payment money as u wish. As an example, you uld use it to pay part cost of 3ges or salary which the in-ed driver receives, coupled th pay to a permanent or ternrary replacement Dr you may prefer to make a np sum payment as a gesture goodwill to the driver or his pendants. Again, the money 5y go towards the training sts for a replacement.
Commercial Union pay bene5 at two levels. The normal vel relates to commercialhide drivers, while a higher fel is applied to private vehicle ivers who are usually manerial, sales or technical staff. Payment is made for pretty ll all road accidents, though are are exceptions. For instce, payment is withheld if ur driver was affected by drink drugs or has an infirmity lich may affect his driving ility.
If your vehicles have seats for are than seven passengers or 3 used for premises or site )rk, special terms will be aped.
What about cost and benefits? ell, for E5 a year per vehicle e policy pays when an thorised driver is killed or ;abled as a result of an accint while driving a vehicle vned by, hired by or lent to an -iployer, or while entering or ghting from it, loading or unading, or carrying out emer
gency roadside repairs.
For total disablement from usual work up to two years from the date of the accident, the benefit in respect of private vehicle drivers is £40 a week, while for commercial vehicle drivers it is £20 a week.
For permanent total disablement from work of any kind occurring within two years of the accident, a payment of £10,000 is made for private vehicle drivers and £4,500 for commercial vehicle drivers. The appropriate lump sum is paid in addition to the weekly payment already referred to, normally after the first two years.
The lump sums of £10,000 and £4,500 also apply where there is loss of or loss of use of one or more limbs or loss of sight in one or both eyes, though a deduction is made of any sum paid for weekly benefits. Similarly, in the event of death, the lump sum is paid less any weekly benefit which may have been paid before death arose.
Drivers' mates can also be insured. For £2.25 extra, you receive the same proceeds for a driver's mate as for the driver of a commercial vehicle. It should be noted that limited benefits are paid in respect of persons under 16 years of age. A minimum premium of £10 is imposed for each policy issued.
Another insurance policy introduced about a year ago is worthy of consideration. This one comes from Eagle Star and this contract is known as the Smallfleet policy. It is aimed at businesses running five to 15 vehicles, commercial vehicles or cars. An Eagle Star spokesman told me recently that the contract is selling well because it fulfils a real need and the premiums are reasonable.
Certain features of the policy may well be of particular interest to small fleet owners. For example, the policy cover is comprehensive, subject only to a £50 accidental damage excess plus the usual excess applicable to young and/or inexperienced drivers.
Automatically included are such protection features as indemnity to principals against negligent acts by any of the policyholder's employees; use of policyholder's vehicles by .unlicenced drivers, where a licence is not required by law; and cross-liability between firms within an organisation.
Under this contract there is no worry about possible loss of any no-claim bonus because the usual bonus clauses are deleted, being replaced by a special Smallfleet discount. When an additional vehicle is aquired, this discount applies automatically.
Premiums are related to a policyholder's individual risk experience. Taken into account when calculating premiums are such considerations as the number and cost of past claims over the last three years — though allowance is made for • any isolated large claims which might well unfairly distort the claims picture.
Normally when you buy or sell a vehicle you need to notify your insurance company (or insurance broker} each time. However, under the Smallfieet policy you have only to notify changes to Eagle Star in a single declaration once a quarter. This avoids the need to issue temporary cover notes, as "blanket' insurance certificates are used. This can save a good deal of frustration, time and paperwork — altogether more convenient for everybody concerned.
An additional Eagle Star service is on offer. This is Esiplan and is a facility enabling you to pay premiums by instalments, which may be important if there is any cash-flow problem.
Mention should also be made of a mini-fleet plan operated by Guardian Royal Exchange aimed at fleets of between five to 12 vehicles. Handling costs are low, with blanket certificates, quarterly declarations, any hired vehicles automatically covered, and simple premium calculations.
The GRE premiums are competitive and its mini-fleet discount can exceed the collective no claim discount, even reaching 70 per cent for some renewals. A further point is that isolated large claims will not unduly influence premiums.
Additional vehicles immediately gain the mini-fleet discount, and claims history is considered over a five-year period.
But there is one snag — hauliers and plant hirers may have difficulty in getting a quotation but it could be worth a try.