Property cover for insurance
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• From 31 December next year, all motor insurance policies will have to cover liability for damage to property. The extension of cover follows the Government's decision to implement a European Community motor insurance directive, and Parliament will be asked to approve the latest regulations after the summer recess.
The change is unlikely to have a major effect on operators' premiums, according to the Association of British Insurers, which estimates that insurance premiums will have to rise by between 1-2%.
The AB1 says that although most hauliers already have motor insurance covering damage to property, the increase in premiums will be necessary to meet the costs of the Motor Insurance Bureau, which normally settles claims involving uninsured drivers. The MIB is currently funded by a levy drawn from members of the Association of British Insurers.