For several years we have seen a hardening of the insurance market, and this is true also of their attitude towards the claims they deal with. Insurers will jump at the chance of being able to decline a claim given the opportunity and so it is important to ensure you understand your insurance policy cover and that the information on which this is provided is correct and kept up to date to help reduce this risk.
We have highlighted below an example of some of the situations where we have seen insurers ‘reserve their rights’ to refuse indemnity. Of course, this is just a general ‘snapshot’ and as a policyholder you should be aware of your own insurance cover, its terms and conditions and the details you have declared about you and or your business, but we hope this will be helpful to you.
Allianz UK notes that new vehicle registrations only began to pick up in August 2022 and used vehicles have gained significant resale value. This shortage of semiconductors is due to the pandemic’s impact, as people turned to video-calling, streaming, gaming, and working from home, resulting in a spike in orders for new laptops and mobile phones.
Typically, a car has between 1,400 and 1,500 semiconductor chips, with some models requiring over 3,000, making them an essential part of vehicle production.
Your Business Name
The insurance policy needs to note and include all your company names e.g. any Group Holding Names, Subsidiary Names, Trading As etc…
Is your Business Description correct?
You need to declare all your business activities, not just your primary business function. For example, if you have a Haulage company and this is your main business activity, but you also carry out in-house vehicle servicing and or repair, your policy will need to note this ‘motor trade risk’.
Haulage Containers / Bins
Bins and containers need to be specified if cover for them is required. Motor Fleet policy’s definition of Trailers may only apply to trailers that are towed, not carried. So bins/containers need to be declared.
DVLA V5 – Registered Keepers
Any vehicles insured on your policy that are registered to private individuals (e.g. directors of the business) need to be declared and noted as so on the policy. An insurance policy will only cover those vehicles agreed and that are registered to the policyholder i.e. the policyholder is the name shown on your insurance schedule. If a vehicle is registered with the DVLA in a different name, insurers will look to decline cover.
DVLA V5 – Registered Keepers
Any vehicles insured on your policy that are registered to private individuals (e.g. directors of the business) need to be declared and noted as so on the policy. An insurance policy will only cover those vehicles agreed and that are registered to the policyholder i.e. the policyholder is the name shown on your insurance schedule. If a vehicle is registered with the DVLA in a different name, insurers will look to decline cover.
Vehicle Trackers
Where insurers have requested a Tracker be fitted to certain vehicles – check with us the type of Tracker required as often insurers stipulate what is required – usually it must be compliant with a particular Thatcham category.
Late Notification of a Claim
Insurers will require that you report all incidents likely to give rise to a claim, regardless of blame, as soon as possible. Some insurance policies may stipulate a time period.
Reduced EXCESS for early reporting of a claim
Some insurance policies will offer to reduce the excess applicable if a claim is reported to them within a stipulated time. For example, in respect of Motor policies, if a claim is reported by phone to them within 24 hours of happening and where you are using the insurer’s Approved Repairer.
Insurance companies and their policies are not all the same, so always refer to your own insurance documents. We are here to help you and help you understand your insurance. If at any time you are unsure of anything regarding your insurance policy and the cover it provides, please do not hesitate to speak to us.