Commercial motor stage 1 Flashcards
1
Q
Motor insurance is regulated by what?
What does this compel motor users to do?
A
Regulated by Road traffic Acts
Compels users to arrange insurance providing cover against unlimited liability for death or injury to third parties together with a minimum level of £1,200,000 in respect of third party property damage.
2
Q
What is the Key objective of the 4th motor directive?
What did it help deal with?
what did it result in creating?
A
Ensure that all Uk (European) vehicles are readily identifiable using only a registration number.
This was the creation of Motor insurance database (MID), which has the goal of hold information of every insured vehicle.
Help deal with cross boarder claims, as well as help in tackling in uninsured driving. As police as able to use “spot checking” to establish if the vehicle is insured.
3
Q
What are the Key objectives of the fifth motor directive?
How was is this achieved?
A
1)Aimed at trying to provide better protection for victims.
provides compensation for victims where vehicles have no reg plates.
provides claims to be allowed for property damage in the case an unidentifiable vehicle cause significant personal injury.
2)Allows for insurance to be made for imported cars ( for 30 days)
4
Q
What is a fleet
A
Generally a fleet is regarded as 10 or more vehicles.
5
Q
What are the advantages of fleet insurance to the policyholder?
A
May able to negotiate a better rate for a block of business then what would be achieved if vehicles were individually insured.
Reduced admin costs
6
Q
What are the advantages of fleet insurance to the insurer?
A
Attract large premium and provide significant revenue.
Fleet rating enables the ability to underwrite large of group of vehicles, therefore save time from having to individually rate them.
lower admin costs
commission rate often lower.
7
Q
When was there a key change to the Allianz commercial motor account, and what did it aim to achieve?
A
The key change was made in 1999,
1)Business started to written for profit, not market share.
2)there was also adoption of new rating tools which were aimed at deriving rate.
3)Weekly returns were brought into the reporting cycle, allowing almost constant monitoring, ensuring trends were easily identifiable.
4) Small fleet cx policies were introduced.
5) A clear set of authorities and a referral process was implemented
8
Q
What is Allianz Aim
A
To sustain the profitability of the account through the market cycle by continuing the strong underwriting and portfolio management disciplines in accordance with our segmentation policy, risk quality and pricing strength.
Whilst capitalising on opportunities to grow core product.
9
Q
What is Allianz Philosophy
A
To be a major player in the fleet market, and have an account which is highly successful delving profits on a stand alone basis.
Have a controlled balance between the two core of business that allianz operates in.
10
Q
What is key for Allianz account management?
A
To have a continuous and detailed understanding of how the account is performing.
Key to this is the different perspectives.
11
Q
What are the 4 broker models in the Uk market
A
1) global: Globally trading brokers with a significant presence within the UK
2) Uk trading brokers:
3)Network: Independently owned brokers who have joined a larger group of brokers to leverage scale and knowledge.
4) Regional independent: Independent broker (not in a network) who focus on their local market, with an emphasise on building strong trading relationships with clients.
12
Q
Why are Brokers segmented?
A
1) identify the most and least profitable customers
2) Improve customer services
3) Price products differently
4) Build loyal relationships
5) Develop better products and
13
Q
How does Allianz assess the value of brokers?
what are the rankings?
A
1) Classify brokers on their premium and reach.
(AADt….Prime….SAM)
2) Classify brokers on their value.
(profitability/ Size/Dynamics/ New business/ lapse rate etc)
Add 1 and 2 together to get score.
Black– where we would need to see a real improvement
Bronze—(0-54)
Silver(55-70)
Gold (71–100)
14
Q
How does Allianz classify brokers on their premium and reach?
A
ADDT = GWP with allianz which is less then £100k
Core = GWP with Allianz which is between £100k and £1million
Prime = GWP with allianz whic is between £1 and 3 million
Prime plus = GWP with allianz that is greater then £3 million
SAM = Global or network brokers.
15
Q
What are the three ways to rate fleets
A
1) No claims discount
2) Fleet discount
30 Variable fleet products
16
Q
describe how the no claims discount rating system is used
A
A base premium is established for the vehicle typically according to: value/Age of driver/ make of car.
This is time consuming when there are lots of vehicles on the fleet.
17
Q
describe how the Fleet discount rating system is used
A
Similar to no claims discount, but rather then looking at the vehicles one at the time. The experience of the whole fleet is considered using a method known as costing, which will provide a average rate per vehicle which is then compared to the book rate.
18
Q
describe how the Variable rating system is used
A
A system which calculate the average rate based on the claims experience
19
Q
Describe accident frequency. What the forumla?
A
The ratio of claims to units of exposure expressed as a %.
Number of claims/Vehicle years
20
Q
What is the forumal for average cost per claims
A
Total incurred claims loss/number of incurred claims
21
Q
What is the formula for cost per vehicle ?
A
Total incurred claims cost / vehcile yers for specfic period
22
Q
When must a certificate of motor insurance be delivered to a person?
what can be used as a temporary certificate of insurance? how long are these issued?
A
Before the insurance is in force, until that period the insurer is uninsured.
Cover notes can be used as certificates and are usually issued for 30 days.
23
Q
Backdating is …
A
illegal
24
Q
What does CCE stand for? what does it show?
A
Continued claims experience. Which shows the claims history of a clinet over a specfic period.
25
What does Earned premium used for?
What would the formula be for a 12 month policy period?
It is used to look at the premium of a particular risk proportional throughout the policy period. Therefore making premium look like it is earned throughout the policy period and not just at the start.
Total annual premium/12(months) * number of months on cover.
26
What does the excess stand for?
Should the insured make a claim under any cover where an excess applies, they are liable to pay the first amount of the claim equal to the excess.
27
What Does IBNR stand for
Incurrred but not reported
28
What does IBNER stand for
Incurred but not enough reported
29
What two types of claims inflation is there
Damage: labour cost paint cost
Third party injury: Legal costs/Expected earning
30
What does loss ratio stand for?
Whys is the a measure of profitability
The ratio of total incurred claims costs to earned premium. ( Total incurred claims costs/earned premium)
31
What are the the two types pf loss ratio?
1) accident year loss; which only accounts for claims that occur during the year when calculating a loss ratio. (claims in other years not accounted for).
2) Revenue year loss ratio: All claims that change in account in the year are included. (this involves new claims in the year that have occurred in the year as well as changes claims that have occurred in the prior year)
32
Describe vehicle years
The exposure of one vehicle for on full policy year. It is a measure of exposure for fleet risks.
1 vehicle year represents one vehicles that has been on cover for a full 12 months
33
What does Cmart and Azure do for an Underwriter
1) Automatic costing for Ad and third party claims
2) Large Claim smoothing: This will Cap large claims which would significantly distorted the overall claims costs
3) Automatically adjust a costed rate dependant upon commission
4) Account comparison:
5) Large claim provision; Ensures that across all policies collect a bit of premium which can be pooled together to cover any large losses on the account.
34
Define a Soft market
When rates are set at an adequate level, which allows insurers to return profits on their accounts.
This profitability lead to more competitors joining the market, which in turns lead to prices to fall
35
Why does a soft market lead to a hard market
Due to falling prices, profits also fall, but exposure does not, it may even increase if forced to compete for market share.
This inevitably leads to a fall in profit or even a loss making position.
This results in some companies leaving/reducing market share, which lowers supply.
As this happens the price increases--- and is known as a hard market.
36
What does CIE stand for, and what does it assist in?
Continuous insurance enforcement.
Implemented to assist in tracing uninsured vehicles. in 2011, it made it illegal offence to be the registered keeper of a vehicle and for insurance not to be in place whether the vehicle is driven or not.
Exceptions would be made if it is declared officially off the road or a change of ownership is being processed by the DVlA.
37
What does the Sixth EU motor directive state?
Supersedes and consolidated all other previous EU directives.
Main stipulation are:
1) Obliges all motor vehicles in the EU to be covered by compulsory third party insurance.
2) abolishes border checks for insurance, enable people to drive across the EU as if one country
3) specifies a minimum third-party liability insurance cover
4)Requires claims about accidents in an EU country other than the victims country of residence to be settled quickly.
5) entitles policy holders to request a statement of any claims involving their vehicle, which were covered by their insurance contract over the last 5 years.
38
When did the first vehicle appear on British roads?
Who and when was insurance first offered to cover motor risks
when did motoring become avaiable to the masses?
What was the first legislation passed?
1) 1894
2) the Law Accident and Insurance society Ltd was offering policies to motor vehicle owners in 1898.
3) 1920
4)The first Road traffic act was passed in 1930.
It was indented to ensure that funds would be available compensate the innocent victims of motor accidents, by creating compulsory insurance.
39
What is a blanket certificates?
Aimed at reducing admin expenses.
These allow cover any vehicle owned, hired, loaned or leased to the insured, and do not specify the vehicle registration of individual vehicles.
40
What is Core?
Cars
Commercial vehicles where the use is restricted to the carriage of own goods only.
Low risk plant which are a snall proportion of an overall larger core connection
41
What is non-core
Commercial vehicles used for hire and reward
Public/private hire
Self-drive hire
Agricultural vehicles
bus and coach
42
What does FNOL stand for?
What does Allianz do compared to other competitors, why this an advantage for Allianz?
First notification of loss.
For Allianz this is handled in house, this is an advantage for them as it gives the ability to cover off more management of the claim as quickly as possible which reduces costs and improves customers services.
Achieved through:
1) Better/quicker control of third party costs (eg credit hire costs.
2) Quicker repair of damaged vehicles as repairs can be arranged at FNOl stage
3) Confimring liability at FNOL when appropriate
4) Handing claims off to the relevat third party injury claims handlers within 10 days of FNOL to allow early management of third party injury claims.
43
What is the benefit of a Approved repairer network?
Gives control over cost and service with regards to handling accidental damage claims.
44
What does CAT stand for?
What does it provide for?
Case analysis tool.
Provides a detailed analysis and can include information such a circumstance codes, claims by weekday, age of drivers involved.
This tool assists in risk management for both Allianz and the insured.
45
describe the CX product
Small fleet product
Targeted at fleets of 4 to 14 vehicles
Rated using the fleet discount method
cover can be comprehensive/third party fire and theft or third party only
Certificates are issued on a specified basis
46
Describe the BV product
Motor fleet
Target at fleets of 15 vehicles or more
rated using the variable flate rate method
cover can be comprehensive/third part fire and theft or third party only
Certificates issued are blanket certificated which cove all vehicles owned/hired or leased to the policyholder.
47
Describe CC product
Complete taxis
Single vehicle product, with the ability to write up to a maximum of 4 individual polices linked to the same policy holder.
Public hire/private hire executive hire and minibus hire
Rated variable rated based on granular pricing algorithm.
cover can be comprehensive/third part fire and theft or third party only
certificates are issued on a specified basis
48
Describe CD products
Complete tuck
Single vehicle product, with the ability to wrote up to 6 individual polices linked to the same policyholder
Usage permitted is carriage of own goods and for hire and reward
Caters for vehicles between 7.5 tonnes to 44 tonnes as standard
Vehicles are variable rated based on granular pricing algorithm
certificated issued on a specified basis.
49
Describe CA prodcuts
Completed mini fleet
Targeted at fleet of 3 to 8 vehicles
vehicles are variable rated based on granular pricing algorithm
cover can be comprehensive/third part fire and theft or third party only
Certificates are issued on a specified basis
Cancellation condition is wider than CX/BV & more aligned to a consumer wording.
50
What was significant about the civil liability act 2018?
The Lord chancellor has the power to change the law relativity to amount of damage for whiplash injuries and the discount rate applicable to personal injury claims.
This rate must be a rate based upon what a claimant could be expected to achieve if the recipient invested the relevant damaged for the purpose of securing that:
1) relevant damages would meet the losses and costs for which they are rewarded.
2) the relevant damages would be exhausted at the end of the period for which they are rewarded.
51
What does PPO stand for? when are they awarded?
1) Periodical payment orders
2) PPos is an award ordered by a court of law at awards an injury payment to claimant for each year of their life rather than a one off lump sum, to settle large personal injury claims..
52
What did the Courts act of 2003 enable court to do?
What are the consequences of this?
Enabled court in England, Wales and northern Ireland to order PPos for future losses and care cost without constant of the parties concerned.
2) Claims will remain open for much longer and it will possible for settled claims to be reopened and reviewed following changed in the claimants condition or medical advances.
53
What is the corporate manslaughter and corporate homicide act 2007?
What is the offence designed to ensure?
1)Provides that all corporation or limited companies can be prosecuted for manslaughter committed in the course of their operations.
In terms of of the relevance to fleet operators is that the act means companies are responsible for employees who drive their own cars, as well as company cars.
2) Designed to ensure that mangers who have overall responsibility for the strategic management or organisation of the companies activities as well as those who set and monitor workplace practice are culpable for their action on behalf of the company.
54
What are the type of underwriting fraud?
1) Non-disclosure: Failure to advise insurers of a material fact which would have affected an underwriter's judgment of the risk.
2) Misrepresentation; A false statement of fact made to an insurer which has distorted the true exposure of the risk.
3) When someone claims to be the main driver on a car insurance policy when they are not.
55
What are common type of claims fraud?
1) staged or contrived accidents
2) Faked thefts/arson/vandalism
3) Phantom passengers claiming for additional passengers which were never in the vehicle at the time of the accident.
4) Exaggeration: of the extent of injury suffered or damage caused.
56
What is the commercial motor reinsurance retention value?
£5,000,000
57
What years did legislation happen in?
1) Road traffic act 1930: Unlimited liability for death or injury to third parties.
2) Road traffic act 1988-- Consolidating act: Introduced the 1st and 2nd EU motot insurance directives into uk law.
£250,000 limit third party property damage indemnity
3) Third EU motor insurance directive 1992
Cover provided in other countires increased to minimum of that country or minimum of home country, whichever is greater.
4) Forth EU motor insurance directive
creattion of the MID so that injured third parties can identify insurers
5) Frfth EU Motor insruance directive
increased minimum TPPD limit
6) The Motor vehicles ( compulosry inurance) regu;ations 2016
implmented the EU m
58
What is the Net combined ratio
A measure of a insurance companies company's profitability expressed in terms of the ratio of total costs divided by total revenue.
(Incurred losses +expenses)/ Earned premium
59
What is the acceptance criteria of Allianz motor insurance?
Fleets of four ot more vehicles insured in one name, in the joint name of two or more companies in the same group or in the name of a parent company and subsidiary companies.
60
What does a normal risk consist off ?
1) has been established for at lest 3 years and an up to date confirmed claims experience from previous insurers has been obtained.
2)Has not expanded nor contracted rapidly
3)Has not changed insurer each year
4)And does not display risk feature which require special consideration.
61
What are the first 7 risk types?
Which ones are core?
1) Private cars (90% +)
2) CV's up to 7.5t excluding haulage (90%+)
3) Haulage risks (17t to 38t)
4) Haulage risks (up to & incl. 16t)
5) Mixed fleets (50/50 spilt ex hauage)
6) Mixed fleets ( 66.6% cars0
7. Mixed Fleets (66.6\% Cv's ex haulage)
3 and 4 are non-core, while the rest are core.
62
What are risk types 8 to 14?
Which ones are core?
8) Mixed fleets (50/50 spilt incl. haulage )
9) Mixed fleets (Agricultural risks)
10) Buses and coach risks
11) Private and public hire risks
12) Self drive hire
13) Niche
14) Car Jockkeying
All are non-core.
63
What are the risks that are not normally accepted, and why?
1) Motorcycle: Pillion Risk
2) Sports persons/Entertainers: Exposure to high earners
3) Car jockeying : High value/performance vechiles possibly being driven by inexperienced drivers
4) Waste disposal: Specialist vehicles with unique moving parts
5) Carriage of Hazardous good: toxic/corrosive/explosive/flammable/radioactive
6)Car transporters: Large difficult to manoeuvre vehicles with increased toppling risk if incorrectly loaded
7)Demolition Contractors: Carriage of explosives.
64
What risk would require special consideration, and why?
1)Buses and Coaches: High potential for catatrophe claims. Significant passanger injury exposure.
2) Tankers: Loading and unloading risk and possible contamination
3) Grey Tankers: imported vehicles which do not meet EU specs
4)Skips: Frequently unloaded and left on the road
5)Cerment Mixers; Cemmt solidificant risk, vehicles may alos be used on poor road surfaces
6) Haulage and Courier: often have a higher than average accident frequency and likelihood to experience a large claim as vehicles are on the road more.
65
What is the minimum information required on a presentation?
1) name & address of insured
2) Occupation/use
3) Vehicle schedule
4) Cover details
5) Claims experience
6) details of large loss
66
What are the main types of reinsurers
Specialist reinsurance companies that do not transact original insurance business.
Lloyds syndicates.
Insurance companies that also act as reinsurers.
67
What is the function of the Risk manager
Why are they needed?
The systemic identification, analyses and economic elimination or control of risk that threaten the business.
Providing guidance on best practices in these areas to management
The transfer of appropriately identified risk by contract or insurance.
To demonstrate to the regulator their ability to comply wit solvency II risk-based capital requirements.
68
Third party liability: Indemnity to you.
What is the limit we would pay for accidental damage to another persons property .
1) Private cars
2)Any other vehicle other then private car
3) A good carrying hazardous goods
1) 20,000,000
2) 10,000,000
3) 1,250,000 or the minimum monetary limit as required by the laws relating to compulsory insurance of motor vehicles, whichever is the greater amount.
69
Third party liability: Indemnity to you.
What would we cover the policyholder from?
!) the use of
2) Goods falling from
3) and during the operation of loading or unloading
4) And during the operation of charging
70
Third party liability- who else is provided indemnity
a) Any person you allow to drive or use the insured vehicle provided this is permitted by the certificate.
b) Passengers - whilst traveling in, getting into or out of the insured vehicle.
71
Third party liability - What is the amount paid out in the event that there is an accident involving more then one person insured?
The amount payable shall be apply in aggregate and in priority to the policyholder.
72
Thirty party liability - contingent liability
We will indemnify You while any vehicle not Your
property nor provided by You is being used in
connection with Your business as though such vehicle
were the Insured Vehicle by any person who is
employed by You.
73
Third party liability - what would we cover for legal defence costs?
Firstly - In respect of any event which may be the subject of
indemnity under this Section, with Our prior written
consent We will arrange and pay for
1) representation by a solicitor at any coroner’s inquest
or fatal accident inquiry or in any Court of Summary
Jurisdiction
2)legal costs and expenses incurred by You in relation
to defence on any charge of manslaughter or of
causing death by careless or dangerous driving.
3)legal costs and expenses incurred in providing
defence of any criminal proceedings, including costs
of prosecution awarded against You and appeals
against judgments, arising from a charge under the
Corporate Manslaughter and Corporate Homicide
Act 2007 or any equivalent legislation in the Isle of
Man or the Channel Islands
74
Third party liability - Legal defence costs will only be provided if?
i Our indemnity under subsection 5C is subject to a
limit of £5,000,000 in any one Period of Insurance.
ii the proceedings must relate to an alleged breach
occurring during the Period of Insurance within
Great Britain, Northern Ireland, the Isle of Man
or the Channel Islands in connection with the
ownership, possession or use of an Insured Vehicle.
iii We have agreed details of the specific solicitor or
counsel, prior to their appointment to act on Your
behalf.
iv under subsections 5B and 5C in the event of an
appeal, solicitor or counsel has advised that there
are strong prospects of succeeding in the appeal
or recovering any costs award made against the
defendant at all times throughout the appeals
process. Any change to such prospect of success
during the appeals process may result in cover
being removed.
75
Third party liability - Legal defence costs what would be not liable for?
1)for any fines or penalties imposed on You or the cost
of implementing any remedial order or publicity
order.
2)for proceedings resulting from any deliberate or
intentional criminal act or omission by You.
3)where indemnity is provided by another source or any
other insurance or where but for the existence of this
subsection indemnity would have been provided by
such source or insurance
76
Damage - how much will indemnify be pad for the loss of or damage the insured vehicle?
Loss of or damage to the Insured Vehicle up to the
Market Value at the time of the loss or damage or
the value last declared to Us, whichever is the less. If
We agree to pay for damage to be repaired We may
decide to use suitable parts, including Green Parts,
which are not supplied by the original manufacturer.
In the event of a total loss payment in respect of an
Insured Vehicle We are entitled to possession and
ownership of the Insured Vehicle.
77
Damage - How much indemnity will be paid for the Recovery and redelivery of the insured vehicle?
The cost of protection and removal of the Insured
Vehicle to the nearest repairer, when necessary if the
Insured Vehicle is disabled, after such damage, and
the reasonable cost of delivery to You after repair.
78
Damage - when will new for old cover be provided?
If the Insured Vehicle is a Private Car or a Goods
Carrying Vehicle under 7.5 Tonnes Gross Vehicle Weight
and has been owned by You (or is the subject of a
hire purchase or any type of leasing or contract hire
agreement) since new and during the period of one
year from the date of its first registration it is either:
A )lost by theft and not recovered within 28 days of the
date on which the theft is first reported to Us or
B ) damaged to an extent greater than 50% of its list
price (inclusive of tax) at the time of such damag
79
Damage - when will misfuelling be covered?
If an Insured Vehicle is incorrectly fuelled We will pay
the costs of:
A draining the incorrect fuel and cleansing the fuel
tank
B rectifying any subsequent damage inadvertently
caused to the Insured Vehicle as a result of it being
driven or moved.
80
Damage - what cover is provided for electric vehicles?
Loss of or damage to :
A the electric charging cable and/or connector to the
Insured Vehicle
B the battery or batteries of the Insured Vehicle
including damage as a result of a power surge
whilst charging
C Your electric charging wallbox or charging post
D the electric domestic charging wallbox or charging
post the property of Your employee subject to Your
request
81
How much is the excess increased by when a driver of 25 is driving, and when an inexperienced driver is driving?
A Under 25 years of age £250
B 25 years or over who has
not held a full driving
licence for 12 months
at the time of loss
or damage £175
82
When will an increase excess for a young driver, or inexperienced driver, not apply?
This exclusion shall not apply in respect of any
payment solely for the replacement or repair of
i) the windscreen, windows, sunroof or
panoramic glass roof of the Insured
Vehicle and any resulting scratching of the
bodywork of the Insured Vehicle
ii) the electric charging cable and/or connector
to the Insured Vehicle
iii) the electric charging wallbox or charging
post
83
What is the minimum excess paid for the replacemnet of the windscreen, windows, sunroofs or panoramic roof glass of the insured vehicle, and any resulting scratching of the bodywork of the insured vehicle?
When does this excess not apply?
£100.
Excess does not apply if the windscreen or window is repaired and not replaced.
84
How much is the excess for the replacement or repair of the electric charging cable, connector, electric charging wall box or charging post?
£50
85
Trailers - When and what cover applies to them?
1 to any Trailer attached to the Insured Vehicle as though
it were the Insured Vehicle or
2 under Section A – Third Party Liability only in respect
of any Trailer owned by You or for which You are
responsible while it is detached from any vehicle
Provided that You are not entitled to indemnity under any
other Policy
86
When traveling aboard - when and what cover applies?
Your Policy applies in respect of accidents occurring in
A Great Britain, Northern Ireland, the Isle of Man and
the Channel Islands
B any member country of the European Union
C Andorra, Bosnia-Herzegovina, Gibraltar, Iceland,
Liechtenstein, Monaco, Norway, San Marino, Serbia,
Switzerland and Vatican City
Your Policy provides the minimum indemnity required
to comply with the laws relating to compulsory
insurance of motor vehicles in any other country.
Where the minimum indemnity provided is less than
that provided under United Kingdom minimum legal
requirements, the higher level shall apply.
87
How much medical expenses will we cover ?
We will pay medical, surgical and dental fees up to £500
per person reasonably incurred for attendance on any
person travelling in the Insured Vehicle injured as a direct
result of the Insured Vehicle being involved in an accident.
The maximum We will pay will be limited to £2,000 in total
for claims arising out of any one cause.
88
How much will we cover for personal belongings?
How much is the excess?
We will pay up to £500 in total for loss or damage to
rugs, clothing and personal effects whilst in or on the
Insured Vehicle.
The excess is £50 of any loss or damage.
89
Personal belongings - what are the exclusions?
We shall not be liable to pay for
1 the loss of or damage to money, securities,
jewellery, furs, goods, equipment or samples
carried in connection with any trade or business,
or property insured under any other Policy.
2 the cost of reinstating or replacing data of
any type that was held in or stored on any
equipment in the Insured Vehicle.
3 any loss or damage where the Insured Vehicle is
left unlocked.
90
How much will be cover for In-vehicle Safety technology?
We will pay up to £250 for loss of or damage to In-Vehicle
Safety Technology whilst in or on the Insured Vehicle.
The excess is £50 for any loss or damage.
91
What is our stance on unlicensed drivers ?
Your Policy shall remain operative whilst the Insured
Vehicle is being driven by or is in the charge of for the
purpose of being driven by a person who does not hold
a licence to drive the vehicle in circumstances where a
licence to drive is not required by law provided the person
driving is of an age to hold a licence to drive such vehicle
92
What is our stance on replacement locks and keys
If the keys or any device used for starting the Insured
Vehicle or using its locks or immobiliser are lost or stolen,
We will pay for the cost of
1 replacing the door and/or boot locks
2 replacing the ignition/steering lock
3 replacing the lock transmitter and central locking
interface
4 recoding or, if necessary, replacing any alarm system
used with the Insured Vehicle
93
What is our cover on personal accident?
Who will payment go to?
We will pay £10,000 at Your request if the driver of the
Insured Vehicle suffers accidental injury while travelling
in or getting into or out of the Insured Vehicle if the injury
within three months of the accident directly results in
death, total and permanent loss of sight in one or both
eyes or loss of one or more limbs.
Payment will be made direct to the injured person or to
their legal personal representative
94
Personal accident- what are the exclusions
We shall not be liable to pay for
1 more than £10,000 following one accident.
2 for injury arising from suicide or attempted
suicide.
3 for any person who is less than 17 or more than
70 years of age.
95
What cover do we give to unauthorised movement?
At Your request Your Policy applies in respect of legal
liability for injury, loss or damage arising out of the
movement by You or Your employees of vehicles not
belonging to You which are impeding Your legitimate
access or exit.
96
What is the occasional business use we offer?
At Your request Your Policy extends to apply in respect
of any Private Car the property of or hired or loaned to
any employee whilst being used in connection with Your
business but excluding any Private Car that has been
provided by You.
Cover under this section is only operative providing at the
time of the death, injury, loss or damage the Private Car
has separate insurance in its own right.
97
What is the maximum level of indemnity that will be covered for Legal Protection?
The most We will pay for all claims arising out of any one
event is £100,000.
98
Legal Protection what will be cover against ?
We will pay the following on Your behalf.
* The professional fees and expenses reasonably and
properly charged by the Legal Representative on a
Standard Basis, up to the standard rates set by the
courts, which You cannot recover from Your opponent.
* Your opponents Costs in civil cases which You are
ordered to pay by a court or tribunal or which You pay
to Your opponent with Our written agreement.
We will only pay Costs which We consider are necessary
and in proportion to the value of Your claim.
We will only start to cover Costs from the time We
have accepted Your claim in writing and appointed the
Legal Representative.
99
Which or our products are Digital and non-Digital?
Digital:
1) Complete Mini fleet(CA) - and - Complete Truck( CD)
Non-digital;
1) Small Fleet (CX) - 2) Motor Fleet (bV0 - 3) Self drive hire (BV/01/02)
100
Describe how are self drive hire is sold?
SDH is only written through specialist SDH brokers and branches - it is not available in the open market.
101
What is the prefix for Niche business?
Where is it underwritten?
Prefix are: IJ and IQ
it is only written in London.
102
What claims services can we offer our customers?
1) Flexible claims reporting through our Motor Claims Teams via telephone/email/ claims hub
2) Online claims tracking and live chat facility via Allianz Claims hub.
3) Dedicated UK based claims handlers who will proactively manage claims and keep clients informed from notification to final settlement.
4) Recovery, protection and redelivery of the insured vehicle following an accident.
5) Courtesy vehicle provided through the Allianz Approved repairer network. Class A vehicle provided, with the option to request a like for like vehicle at competitive hire rates.
6) Nationwide Allianz approved repairer network, includes a lifetime guarantee on all repairs.
7) Access to dedicated Claims Relationship Managers for larger clients.
8) Excess and VAT funding solution available for larger clients.
103
What Risk management services can we offer our clients?
1) Allianz Partnership Plus facility providing financial assistance towards the costs of implementing risk management initiatives.
2) Detailed claims reports via our Case Analysis Tool to help major clients pin-point where their fleet is most at risk.
3) Free risk management guidance and support via our risk management website.
4) Access to exclusive discounts on a range of risk management solutions via market leaders.
5) Discounts on breakdown services, both pay on use and insured annual coverage are available.
104
What is the definition of a company who can get an insurance policy
All the vehicles may be insured in one company name, or in the joint name of two or more companies in the same group, or in the name of the parent company and/or subsidiary companies.
105
What should be avoided, in regard to name of the insurer?
We should avoid use of the wording "and Associated or Subsidiary Companies" since the expression "Associated Companies" does not have a clearly defined meaning. Also avoid using ‘&/or’ in the title. If using “Associated Companies” these should be listed under clause M/4042.
106
CCE what special considerations need to made, in regards to the accuracy and integrity of the data provided.
if something doesn’t quite look right it should be raised with the broker. If there any concerns with the authenticity of an experience (i.e. it doesn’t follow the insurer’s usual format), initial enquiries should be made with the issuing insurer. If they are unable to validate the policy details, you should raise your concerns with the Intelligence team (Intelligence@allianz.co.uk).
107
What does the vehicle year represent?
One vehicle year represents one vehicle that has been on full policy cover for 12 months. This should include all vehicles where at least Third Party cover applies, but should not include trailers or vehicles covered for Fire and Theft only. The exposure for each year is calculated from the number of vehicles on the policy at inception or renewal and any amendments to the vehicle schedule advised during the year.
108
What does CAT mean/do?
To assist with the assessment of renewal cases, our Case Analysis Tool (CAT) provides a full breakdown of all claims data for the selected policy (or group of policies) giving information on trends within driver age brackets, claim notification delays, vehicle types and circumstances of accidents.
109
What driver driver convictions would usually apply additional terms to?
On motor fleet risks we will not normally look to apply terms for drivers with convictions, other than those coded AC, BA, CD40-71, DD, DR, IN, LC30-50, MS40-90, UT, or any offence/combination resulting in a disqualification from driving received in the last 5 years, or has a prosecution pending in respect of any of these offences.
110
What is the best practice to help with the assessment of a driver conviction?
1)full details of their total accident and conviction history;
2) confirmation of their employment situation (i.e. existing [for what period] or proposed new employee);
3) nature of occupation
4) anticipated use of the vehicles, including types of vehicles used
5) copy driving licence
6) a full statement from the person concerned relating to the circumstances leading up to the conviction(s) and what is being done to ensure no recurrences (a copy of this statement should also be retained by the insured on the persons personnel file)
111
How much Micrograms per 100 millitres of breath is required to get a Drink driving conviction?
35 Micrograms per 100 millilitres of breath
112
How much Micrograms per 100 millitres of blood is required to get a Drink driving conviction?
80
113
How much milligrams per 100 millitres of urine is required to get a Drink driving conviction?
107
114
How many point does a young driver need within there two years, to lose it
If 6 or more penalty points are reached within two years of passing that test the full licence will be revoked by DVLA.
115
Why is haulage a risk which requires special consideration?
1) Haulage business represents an above average potential to produce large claims.
116
How is Haulage risk mitigated?
1) manage our exposure within this segment by ensuring that the balance of core to non-core vehicles within the total account remains within the parameters dictated by the Head of Motor, Commercial. 15% of vehicle count.
2)We gather information, that gives us a good understanding of the general management of the risk. --- Through the completion of a Fleet Evaluation Form.
117
Haulage - what specific factors need to be considered?
1) Management – the fleet should be well managed and controlled, with a dedicated fleet controller/manager and there should be evidence of a pro-active approach to risk management.
2) Drivers – a stable workforce with low turnover of drivers and minimal dependency on agency/temporary drivers.
3) Vehicles – vehicle presentation and maintenance should be of a high standard.
4) Loss Control – there should be evidence of accident management techniques to ensure incidents are reported, circumstances investigated, corrective and supportive actions taken where appropriate and performance monitored.
5) Security – sound facilities should be in place to ensure both vehicles and premises are effectively protected. Claims experience detail should support good security measures.
6) Loads – goods carried should be low hazard from both a security and toxicity perspective.
118
What is our haulage strategy?
We will look to grow this element of our book primarily in the Risk Type 3 and Risk Type 8 segments. We want risks that fulfil our expectations of good management with consistent accident frequency and average claims costs. Excess levels should be realistic with £500 including glass being the entry level. Risks operating 10 to 100 large goods vehicles should be considered our target market.
119
Buses and Coaches - what additonal information should be obtained?
1) Full details of garaging arrangements.
2) What are the maintenance arrangements
3) What is the policy on drivers? Are lots of part-time drivers employed or do they use agency drivers?
4) Details of regular contracts.
120
Buses and Coaches - What are the minimum criteria?
1) The risk must have been in operation for at least 3 years with a satisfactory history
2) The business should be family run to ensure hands on control
3) The type of work undertaken should be private hire, excursions and contract work
4) The vehicle schedule should not include Double Deck vehicles
5) The risk should not involve a large element of foreign use
121
Define Private Hire
defined as the letting of the vehicle direct to the hirer from the policyholder’s garage.
122
Define Public hire
defined as the plying for hire in the street, for example, flagging down a hire car (more commonly known as a 'taxi') on the public highway or from a recognised taxi rank.
123
Private and Public hire - Fleets - what are the minimum acceptance requirements
1) Minimum of 5 Cars, MPVs and purpose built Taxis.
2) Comprehensive. Minimum excess £250 ADFT.
3) Mainly (but not exclusively) districts 2 & 3. Avoid inner city urban areas.
4) Drivers Any authorised licensed driver aged 25 or over - no exceptions. Full time employees only.
124
Foreign Purchased Vehicles - what is needed for us to give cover for one of these vehicles?
--What is the exemption?
Insurance can only be arranged in the same country to which the registration or transit plate is registered, and as such we will only provide cover on a vehicle which is bearing a UK plate.
There is however a provision which permits UK insurers to provide temporary cover for non UK registered vehicles on the premise that they are entering the UK to be re-registered. Only under these circumstances can we offer cover up to 30 days for non UK registered vehicles.
125
What is a grey import?
What are the problems of insuring one?
A grey import is a vehicle that has not been specifically produced to UK specification.
1) A new private car being personally imported into the UK without an EU Whole Type Approval certificate must undergo Single Vehicle Approval (SVA), a test devised to ensure that it conforms to the environmental and safety standards required by the UK.
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2) Whilst at first sight there may be no apparent difference between a UK spec model and the equivalent 'grey' model it can often be difficult to obtain parts for them in the UK market. This can have implications for claims settlement costs.
3) The speedometer may be calibrated in kilometres rather than miles. At worst there may be no log book or service history; at best these could be present but in Japanese! This makes assessment of the age and value of the vehicle difficult. This in turn makes assessment of value in the event of a total loss very difficult.
4) There are no valid ABI codes to assign to the vehicle.
126
Grey imports - What is the following criteria that must be met in order to qualify as a personal import?
1) The vehicle has been imported by a person entering the UK
2) That person had, at the time the vehicle was imported, been normally resident in a country other than the UK for a continuous period of at least 12 months
3) That person intends to become normally resident in the UK
4) The vehicle has been in the possession of that person and used by them in the country where they have been normally resident for a period of at least 6 months before its importation
5) The vehicle is intended for their personal or household use in the UK.
127
Grey imports - what are the rating considerations
We do not provide groupings for grey imports. It is necessary to establish the nearest equivalent UK spec. vehicle either from the insured/broker or our own motor engineers.
1) The vehicle premium should be loaded by at least 25% to take into account availability and price of parts.
2) If comprehensive cover is provided we should apply an increased excess depending on the level of excess on the main policy.
3) Consideration should also be given to restricting the persons entitled to drive if possible or restricting the cover provided.
128
What should we do when asked for cover a Skip?
1) Requests for Third Party liability cover whilst detached should be dealt with under a Public Liability policy.
2) Requests for cover whilst detached are to be discouraged but if the "connection" demands consideration, comprehensive policies may be extended to give damage and theft cover on detached skips subject to referral to the appropriate authority holder.
129
What consideration should be make when thinking about insuring tankers?
Acceptance will depend on the nature of the goods carried. Those involved in the carriage of hazardous loads (any highly inflammable, explosive or potentially dangerous liquids or chemicals) will be declined unless specific authority is obtained from GHO.
130
Insuring tankers, what restrictions/ exclusions should we put on?
Loading and unloading risks will be excluded;
Liability arising out of contamination of the load will be excluded.
----Unless otherwise agreed with GHO.
The third party property damage limit has been restricted in the policy wording to £1,250,000 whilst an insured vehicle is carrying any hazardous goods, and as such no further endorsements are required in this respect.
131
What consideration should be make when insuring tankers?
The main issue with this type of vehicle is the possibility of the cement solidifying inside the vehicle.
Therefore - Where cover has been agreed by the appropriate authority holder, clause M/4117 must be applied. This clause excludes the solidification risk. You may also wish to consider applying M/4036 – Toppling Risk
132
What additional hazards apply with tippers in excess of 7.5 tonnes GVW.
The additional risk attaching to larger long wheel base tippers is that the load may stick during tipping operations with the result that either one of the rams’ collapses or the vehicle overturns. These vehicles are particularly vulnerable to damage of this kind when operated on soft or uneven ground and the subsequent damage is likely to include twisting of the chassis.
Also, It is not uncommon for keys to be left in these vehicles, and similar “working” vehicles, to facilitate the operation of warning lights/other equipment running off the vehicles battery. We should understand that claims arising from vehicles stolen with keys in or on the vehicle in this scenario are repudiated under the “keys left in or on the insured vehicle” exclusion.
133
Define special types, why wold we need to cover them?
Special types and items of mobile plant are generally vehicles that are not primarily designed for use on the road, being mechanical machines for use as a tool. However, these machines are often self-propelled to enable them to move from one location to the next. When they are used on a road the Road Traffic Act conditions apply. Therefore we need to provide cover for this road use under a motor policy.
134
What needs to be considered when rating a special type?
With several of these vehicle types it should be considered for rating whether the vehicles are 'confined' or whether they are 'not confined'. A 'confined' vehicle is one which is limited in use to the Insured's own premises, and one which is 'not confined' is used on the public roads.
The Third Party risk in respect of these vehicles is properly covered under a motor policy. However any damage cover is more properly covered under an engineering contract
135
Special type - what type of third party cover is excluded?
The cover provided by the policy excludes the Third Party working risk. This is the Third Party cover while the vehicle is being used as a tool of trade. This cover should be provided by the clients Public Liability policy.
136
Quad Bikes/All-Terrain Vehicles (ATV’s) - what special considerations must be made?
Generally, they do not conform to regulations regarding, tyres, horns, lights, speedometer, mirrors etc. and are therefore not legal for road use.
These machines can be unstable when completing these manoeuvres especially on uneven ground and present significant pillion personal injury exposure.
They are often kept / used in rural areas mainly by young drivers and where security may not be considered by the owner to be an issue.
If the quad bike is used off road, there is no legal requirement to tax and register the quad bike. However, if it is used for agricultural, horticulture and forestry work a quad bike must be registered as a light agricultural vehicle, have a number plate and a minimum of third party insurance.
137
What is standard trailer cover?
Policy cover for any trailer owned or for which the insured is responsible whilst it is attached to the Insured Vehicle;
Third Party Liability cover for any trailer owned or for which the insured is responsible whilst it is detached from any vehicle
Third Party Liability cover for any disabled mechanically propelled vehicle which is being towed by the Insured Vehicle
Policy cover, where the Insured Vehicle is an Agricultural Vehicle, for any trailer implement whilst it is attached to the Insured Vehicle
138
What requirement should be made for trailers wanting cover when detached?
If required, cover should be provided on a specified basis. A separate charge should always be made under the appropriate policy section rather than included within the vehicle rating.
We should obtain the maximum single trailer limit in addition to the total sum insured for all trailers. A full schedule should be provided and monitored ideally on a quarterly basis or the same as the main vehicle schedule.
139
Trade plates - What special considerations needs to be made?
If we agree to cover trade plates under a fleet, we must make sure we are fully aware of the business activities requiring their use, and the types of vehicles involved.
A trade plate should be regarded as an additional vehicle on the fleet. For this reason it is essential to assess the types of vehicles to be driven under the plate, and an appropriate rate charged which is consistent with the rest of the vehicle schedule.
When cover is granted under a fleet policy, endorsement M/4049 should be applied and a specified certificate issued bearing the trade plate number. The correct wording is available under certificate code 680.
A trade plate is not a vehicle registration number but a means of identifying the company or individual to whom the plate has been allocated. As such trade plates are not valid outside of the UK and any requests for green cards should be refused.
140
Airport Risks what special considerations needs to be made?
We are concerned with the use of vehicles "Airside", that is the part of the airport nearest the aircraft. Airside includes runways, aprons, hangers
Airport authorities will not generally allow a vehicle to be used airside unless adequately insured. For example, BAA who control many airports, require third party indemnity with a limit of not less than £50 million.
Subject to being part of a large connection we will consider providing limited cover under the public liability section of the policy (up to £100,000 if requested.).
Details of the contract (description, length, etc);
Vehicles/drivers involved;
Which airport, and the areas to be accessed;
Supervision measures;
Previous experience;
Indemnity limit required.
141
Vehicles Registered in Eire -Can we insure them?
Under the Second and Third Non-Life Insurance Directives, the country of risk is determined by the country of registration. A vehicle registered outside the United Kingdom is therefore subject to the compulsory insurance rules and premium taxes in that country. This means that the vehicle insurance must be written by an insurer in that country, unless a foreign based insurer is authorised to underwrite this business on a services (cross border) basis. We are authorised only to insure motor vehicles which are registered in the United Kingdom. The Allianz representative company based in Southern Ireland is Allianz Ireland Plc
142
Vehicles Registered in Eire - Special risk considerations
Rates of road fatalities and levels of compensation are higher in the Irish Republic than in the UK. We have strict business acceptance criteria and approach Allianz Ireland Plc if it is commercially appropriate to do so.
We will only consider Irish vehicles that are linked to a UK parent for whom we provide motor insurance or on a new business enquiry for which we are competitively quoting for.
The Irish vehicles must be a minority of the total exposure (typically 10%).
The Irish vehicles must be standard cars and /or light commercial vehicles (own goods only)
The risk must be of above average quality.
We will not subsequently offer renewal terms unless we renew the UK policy.
Allianz Ireland will not be obliged to provide terms for the Irish vehicles.
143
Does any special consideration need to be made for vehicles registered in Northern Ireland?
Vehicles registered in Northern Ireland are within the United Kingdom so we (Allianz Insurance Plc) are authorised to insure such vehicles.
However, these vehicles do represent a higher exposure than mainland UK. Rates of road fatalities and levels of compensation are higher and the likelihood of ‘cross border’ usage into Eire is greatly increased.
144
Special consideration for vehicles registered in northern Ireland
We may quote for mainland UK based risks which have vehicles registered and operated in Northern Ireland provided they represent less than 20% of the total vehicle numbers. We must ensure our proposed terms are adjusted according to the increased exposure. As a guide we would anticipate the NI vehicles to attract a rate at least 50% above the equivalent mainland UK rate.
145
What considerations need to be made for Car Jockeying and Car Valet risks
Our main concerns with these risks attach to high value, high performance vehicles possibly being driven by inexperienced young drivers who could damage the vehicle through unfamiliarity with the vehicle and driving within inner-city locations.
We must identify the following when submitting referral to GHO:
Location and number of sites offering the service (check hotel websites);
Number of drivers involved, age and experience (beware non EU);
Number of movements on average per week;
Cover required. TPO is likely and presents a much smaller risk but Comprehensive generally sought;
Details of where vehicles are moved to (especially important for city centre sites in event of car park overflow, routes taken or public car parks used?);
Maximum value of vehicles moved if known;
Any other services provided in excess of valet parking;
Possible request to move a non UK registered vehicle.
146
What must be done when car jockeying exposure forms part of a larger fleet connection?
A separate policy should be set up for the car jockeying element rather than it being included within the overall fleet policy.
Our intention is to limit our exposure to the act of moving the vehicle only and mitigate our losses in the event of an incident involving a high value vehicle.
We must therefore:
Apply enhanced policy excess commensurate with the exposure;
Provide a maximum limit per loss e.g. £75,000;
Remove cover whilst vehicle is parked and unattended (should be covered under owners insurance);
Exclude “loss of use” to eliminate risk of hire charges for replacement vehicle;
Exclude theft risk in same way as above;
Apply endorsements to outline driver age and licence requirements for this extension;
Make it clear we will not cover non UK registered vehicles.
