Motor Trade Road Risks & MotorServ. Underwriting Guide May 2016

Transcription

1 Motor Trade Road Risks & MotorServ Underwriting Guide May 2016

2 Which policy? Including the buying and selling of vehicles MOTOR TRADE Excluding the buying and selling of vehicles MOTOR TRADE or MOTORSERV If in doubt, ring our Motor Trade/MotorServ Helpline on Motor Trade Road Risks The Motor Trade Road Risks Policy is for full or part-time motor traders, with or without commercial premises, and has the following features: Choice of Comprehensive, Third Party Fire & Theft (most areas), or Third Party Only (most areas) cover. No claims discount up to 51% transferable from policyholder s private car, commercial vehicle or motor trade insurance. Protected No Claims Bonus available for full time motor traders. Introductory discounts for mirrored NCD or claim free driving. Flexible indemnity limit on the basis of per vehicle per claim with no annual limit. Split Indemnities available for own and customers vehicles (Comprehensive policies only). Claims on customers vehicles in the policyholder s custody or control settled on the market value. Discount available for increased excess (Comprehensive policies only). Cover for vehicles at home automatically included, even if policyholder trades from home. Reduced rates for spouses requiring only social and domestic cover. Demonstration option. Option to pay by instalments or credit card. MotorServ The MotorServ policy is intended for the growing number of tradespeople either full or part-time, often working from home, who provide services to the motoring public (excluding the buying, selling, hiring, leasing of vehicles): Covers SPECIFIED vehicle(s) for a defined trade and private use, and at the same time allows the policyholder to drive any vehicles belonging to his customers, provided that these are not being held by the policyholder for sale, resale or hiring. Includes cover at business premises for vehicles owned by the Policyholder and specified on the Certificate of Motor Insurance. Choice of Comprehensive, Third Party Fire & Theft (most areas), or Third Party Only (most areas) cover. Up to five named drivers (dependent on number of specified vehicles). Cover for customer s vehicles held at the proposer s home even if he trades from home, as long as these are not being held for sale, resale or hiring. Introductory discount up to 30%. Discount available for increased excess (Comprehensive policies only). Option to pay by instalments or credit card. All policies include legal defence costs for manslaughter or causing death by dangerous driving (up to a maximum of 2,000 for MotorServ). Cover for part-time motor traders and drivers is only available to those in full-time employment who do not have other business(es). Proposers must be aged except for Third Party Only cover where proposers must be aged Cover is available for Motor Trade and Social, Domestic and Pleasure (including commuting to one permanent place) purposes only. Use in connection with any other business is excluded.

3 Contents Introduction General Instructions A. Miscellaneous B. Risks to be referred to the company before any cover is issued.. 8 C. Foreign use D. Teleprocessing checklist MotorServ A. Vehicles B. Drivers C. Occupations D. Premium calculation E. Renewal F. Instructions for the issue of cover notes Motor Trade Road Risks A. Vehicles B. Drivers C. Occupations D. Premium calculation E. Renewal Vehicle Groups Duplicate Forms Telephone NCD Confirmation Additional Driver Form Motor Trade Premium Calculation Sheet MotorServ Premium Calculation Sheet

4 Introduction The Motor Trade Road Risks and MotorServ policies are commercial contracts to provide motor insurance cover for a motor trader to pursue a motor trade business. They do not provide the same cover and benefits as private car or commercial vehicle policies and should not be regarded as such. Cover is on a road risks basis and gives loss or damage cover (if provided) for insured vehicles on a road or parked during the course of a journey and at the private residence occupied by the insured or named driver. Cover is not provided within a 400 metre radius of the business premises and that includes any building or land where the insured keeps or parks vehicles either for short or long periods. No cover is provided for loss or damage to any trailer. The Motor Trade Road Risks and MotorServ policies are available to those operating an acceptable motor trade business on a full or part-time basis. Cover is only available to motor traders which we would define as: a self-employed person or persons actively operating a formal business, on a full or part-time basis, for profit either selling vehicles or providing a service relating to the repair or maintenance of motor vehicles. amount of stock held and when these vehicles were purchased, the limit of indemnity compared with the vehicles disclosed and the nature of the previous insurance history compared with the commencement of the business. Further enquiries may be necessary if any inconsistencies are highlighted. We prefer to deal with these enquires at inception not when a claim is reported. We are happy to provide cover for genuine motor traders but will decline any applications for those who are not operating a motor trade business and have applied for Motor Trade Road Risks insurance for other reasons. The business must generate an income and cover is not available to: Those who regard their motor trade activities as a hobby. Persons who regularly change personal vehicles. Those who carry out repairs for family and friends but receive no payment. Persons who claim to be a motor trader in an attempt to obtain cover for private vehicles that would be more expensive to insure if cover was obtained via a private car policy. Employees of another motor trade business who are required to arrange their own insurance. Those who seek motor trade insurance to cover other business or social activities. Those who are self employed in or a director of any other business than the Motor Trade business being proposed. By definition a proprietor/owner of a business must maintain formal business records to discharge his or her duties in that respect. We expect that all policyholders keep such records, even if part-time traders, and will be able to provide copies if asked at any time. All proposals and supporting documentation will be reviewed in full and the responses to the questions will be crosschecked against each other to ensure consistency of the answers. We review issues such as the trading title of the insured, the business address, the 2

5 General Instructions A. Miscellaneous 1. Issue of Cover A cover note may only be issued if the proposer has completed in full a Motor Trade Road Risks or MotorServ proposal form. The proposed risk must be in accordance with the Company s underwriting requirements for the Motor Trade Road Risks or MotorServ policy. In respect of any mid term adjustment a cover note may only be issued subject to the receipt of satisfactory documentation to support that adjustment. Brokers/Intermediaries are responsible for the issue of continuation cover notes, when authorised. 2. Submission of Proposals The fully completed proposal form, full premium calculation, copy cover note, NCD proof, copy of driving licence (counterpart/dvla verified motoring conviction information and both sides of photocard) for all drivers and direct debit mandate must be sent to the Company immediately (this is required for the Proposer and the Company to comply with the requirement of the Motor Insurance Database). For business transacted via our Broker Online System (BOS), you are not required to forward any supporting documentation at the inception stage. The statement of fact, NCD and copy driving licences should be retained by the broker for audit or claims purposes and may be requested by Covéa Insurance at any time. 3. Acceptance The Company reserves the right to decline any proposal where the risk is deemed unacceptable or unsuitable for the Motor Trade Road Risks or MotorServ Policies, or to impose terms as appropriate. 4. Cancellation Policyholders have the right to cancel their policy within 14 days from the date of purchase or the day they receive the policy documentation, whichever is later. To do this they must return the Certificate of Motor Insurance with their instruction to cancel. If cover has not yet started a full refund will be given. If cover has started we will refund the premium for the exact number of days left on the policy, less an additional charge of 25 plus the prevailing rate of Insurance Premium Tax as stated on the policy Schedule. No refund will be given if a claim has been submitted or there have been any incidents likely to give rise to a claim during the current Period of Insurance. We will also do this if they want to cancel the policy within 14 days after the renewal date. The policy may be cancelled at any other time by returning the Certificate of Motor Insurance with their cancellation instruction. If the policy is cancelled after 14 days and a claim has been submitted or there have been any incidents likely to give rise to a claim during the current Period of Insurance, we will not refund any part of the premium. If there is a Loan Agreement with Covéa Insurance, all outstanding monies must be paid as described in the Loan Agreement. If no claims have been submitted and there have been no incidents that are likely to give rise to a claim during the current Period of Insurance, we will refund the premium for the exact number of days left on the policy less an additional charge of 25 plus the prevailing rate of Insurance Premium Tax as stated on the policy Schedule. We may retain any refund due until the Certificate of Motor Insurance has been received. 5. Accidents and Convictions Drivers with accidents/claims/losses (Fault or Non Fault) and/or convictions may be acceptable subject to the application of a loading to the premium for that driver, calculated using the following demerit tables. To calculate the loading required, add together the demerit points for accidents/ claims/losses and convictions and use the demerit point to loading conversion table. 6. Validation All policies are subject to validation checks to ensure acceptance and suitability. These checks can include but are not limited to searches against telephone number, directorships, postcodes, business websites, Claims and Underwriting Exchange Register and anti-fraud databases. We reserve the right to decline a proposal or ask for further information if a policy fails any of these validation checks. 7. Alteration in risk Any alteration to the policy may result in an additional premium being charged, if so, this will be subject to a minimum premium of 10, (plus the prevailing rate of Insurance Premium Tax as stated on the Schedule). If as a result of an alteration a refund of premium is due, amounts of under 10 (plus the prevailing rate of Insurance Premium Tax as stated on the Schedule) will not be refunded, to cover administration costs. 3

6 General Instructions continued Accidents/Claims/Losses whether a claim was made or not Attempted theft Non Fault Fault (vehicle not stolen only damaged Fire, Theft (including incidents without and/or items stolen) (whether or not vehicle recovered) 100% recovery) MD and Vandalism Numbers Demerit Numbers Demerit Numbers Demerit Numbers Demerit Decline 3 Decline 3 Decline 3 Decline 3 Decline 4 Decline 4 Decline 4 Decline 4 Decline A COMBINATION OF ANY THREE CLAIM TYPES IN THE LAST THREE YEARS IS A DECLINE If ALL of the accidents/claims/losses for a driver are over 2 years old at inception or date of cover, then reduce the accidents/claims/losses demerit points by half. Convictions Period for loading to apply for motoring convictions: Any number of convictions with up to 3 demerit points each apply loading for 3 years from date of conviction. Any number of convictions with 4 or more demerit points each apply loading for 5 years from date of conviction. All motoring convictions must still be disclosed for 5 years from date of conviction, but with demerit points to apply as above. If the conviction resulted in a disqualification of 31 days or less, double the demerit points. Refer if disqualification over 31 days and the demerit points are not shown as decline. If ALL of the convictions for a driver are over 3 years old at inception or date of cover, the demerit points for convictions may be reduced by half. Aiding, Abetting, Counselling or Procuring* Offences as coded, but with 0 changed to 2, e.g. PL10 becomes PL12. Causing or Permitting* Offences as coded, but with 0 changed to 4, e.g. PL10 becomes PL14. Inciting* Offences as coded, but with 0 changed to 6, e.g. DD30 becomes DD36. *These convictions attract the same demerits as the base conviction. 4

7 General Instructions continued DVLA Demerit Code Name of Conviction Points AC10 Failure to stop and/or give particulars after an accident Refer AC20 Failing to report an accident within 24 hours 5 AC30 Undefined accident offence 5 BA10 Driving while disqualified Decline BA20 Driving while disqualified by reason of age Decline BA30 Attempting to drive while disqualified by order of Court Decline CD10 Driving without due care and attention 5 CD20 Driving without reasonable consideration for other road users 5 CD30 Driving without due care and attention or without reasonable consideration for other road users 5 CD40 Causing death through careless driving when unfit through drink Decline CD50 Causing death by careless driving when unfit through drugs Decline CD60 Causing death by careless driving with alcohol level above the limit Decline CD70 Causing death by careless driving then failing to supply a specimen for analysis Decline CD80 Death by careless/inconsiderate driving Decline CD90 Death by driving unlicensed, uninsured or disqualified Decline CU10 Using a vehicle with defective brakes 3 CU20 Causing or likely to cause danger by reason of use of unsuitable vehicle or using a vehicle with parts or accessories (excluding brakes, steering or tyres) in a dangerous condition 3 CU30 Using a vehicle with defective tyres 3 CU40 Using a vehicle with defective steering 3 CU50 Causing or likely to cause danger by reason of load or passengers 3 CU60 Undefined failure to comply with Construction and Use regulations 3 CU80 Using a mobile phone while driving a motor vehicle 3 DD10 Causing serious injury whilst driving dangerously Decline DD20 Driving at a dangerous speed Decline DD30 Reckless driving Decline DD40 Dangerous driving Decline DD50 Causing death by dangerous driving Decline DD60 Manslaughter or culpable homicide while driving a vehicle Decline DD70 Causing death by reckless driving Decline DD80 Causing death by dangerous driving Decline DD90 Furious driving Decline DR10 Driving or attempting to drive with blood alcohol level above limit Decline DR20 Driving or attempting to drive while unfit through drink Decline DR30 Driving or attempting to drive then failing to supply a specimen for analysis Decline DR40 In charge of a vehicle while blood alcohol level above limit Decline 5

8 General Instructions continued DVLA Demerit Code Name of Conviction Points DR50 In charge of a vehicle while unfit through drink or drugs Decline DR60 Failure to provide a specimen for analysis in circumstances other than driving or attempting to drive Decline DR70 Failing to provide a specimen for a breath test Decline DR80 Driving or attempting to drive when unfit through drugs Decline DR90 In charge of a vehicle when unfit through drugs Decline IN10 Using a vehicle uninsured against third party risks 10 LC10 Driving without a licence 3 LC20 Driving otherwise than in accordance with a licence 3 LC30 Driving after making a false declaration about fitness when applying for a licence Decline LC40 Driving a vehicle having failed to notify a disability 12 LC50 Driving after a licence has been revoked or refused on medical grounds Decline MS10 Leaving a vehicle in a dangerous position 3 MS20 Unlawful pillion riding 3 MS30 Playstreet offences 3 MS40 Driving with uncorrected defective eyesight or refusing to submit to a test 5 MS50 Motor racing on the highway Decline MS60 Offences not covered by other codes 5 MS70 Driving with uncorrected defective eyesight 5 MS80 Refusing to submit to an eyesight test 5 MS90 Failure to give information as to identity of driver, etc. 5 MW10 Contravention of Special Road Regulations (excluding speed limits) 3 PC10 Undefined Contravention of Pedestrian Crossing Regulations 3 PC20 Contravention of Pedestrian Crossing Regulations with moving vehicle 3 PC30 Contravention of Pedestrian Crossing Regulations with stationary vehicle 3 PL10 Driving without L plates 3 PL20 Not accompanied by a qualified person 3 PL30 Carrying a person not qualified 3 PL40 Drawing an unauthorised trailer 3 PL50 Undefined failure to comply with conditions of a Provisional Licence 3 SP10 SP20 SP30 SP40 SP50 SP60 Exceeding goods vehicle speed limit Exceeding speed limit for type of vehicle (excluding goods or passenger vehicles) Exceeding statutory speed limit on a public road Exceeding passenger vehicles speed limit Exceeding speed limit on a motorway Undefined speed limit offence 2 points for 1st conviction, 3 points for 2nd or subsequent conviction TS10 Failing to comply with traffic light signals 3 TS20 Failing to comply with double white lines 3 TS30 Failing to comply with Stop sign 3 TS40 Failing to comply with directions of a traffic constable 3 6

9 General Instructions continued DVLA Demerit Code Name of Conviction Points TS50 Failing to comply with a traffic sign (excluding Stop signs, traffic lights or double white lines) 3 TS60 Failing to comply with a school crossing patrol sign 3 TS70 Undefined failure to comply with a traffic direction or sign 3 UT10 Taking and driving away a vehicle without consent or an attempt thereat Decline UT20 Stealing or attempting to steal a vehicle Decline UT30 Going equipped for stealing or taking a vehicle Decline UT40 Taking or attempting to take a vehicle without consent; driving or attempting to drive a vehicle knowing it to have been taken without consent; allowing oneself or be carried in or on a vehicle knowing it to have been taken without consent Decline UT50 Aggravated taking of a vehicle Decline TT99 To signify a disqualification under totting-up procedure Decline Criminal Convictions/Rehabilitation of Offenders Act The disclosure of convictions depends upon the type of offence and the rehabilitation periods concerned for the convictions. The penalty imposed will govern the rehabilitation period. Sentence/Penalty Imposed Custodial sentence (including suspended sentence) of over 4 years, or a public protection sentence Custodial sentence of over 30 months (2½ years) and up to and including 48 months (4 years) Custodial sentence of over 6 months and up to and including 30 months (2½ years) Custodial sentence of 6 months or less Community order or youth rehabilitation order Rehabilitation Period (buffer period below applies from the end of the sentence) Never spent Seven years Four years Two years One year Sentence/Penalty Imposed Fine Fine for a motoring offence A licence endorsement A driving suspension only (no endorsement or fine or penalty points) Absolute discharge Condition discharge, referral order, reparation order, action plan order, supervision order, bind over order, hospital order Rehabilitation Period (applies from the date of conviction) One year Five years Five years End of suspension None Period of Order If more than one penalty is imposed then the greater rehabilitation period is the period of disclosure. For instance, if you are fined and suspended from driving for a motoring offence then the disclosure period is 5 years. It is not our normal practice to quote for persons with criminal convictions that still have to be disclosed according to the Rehabilitation of Offenders Act. 7

10 General Instructions continued Demerit points to loading conversion Demerit Points Loading Demerit Points Loading 0 4 Nil 10 50% 5 10% 11 65% % % 7 15% % 8 25% 17+ Decline 9 35% IF THE TOTAL DEMERIT POINTS FOR ALL DRIVERS EXCEEDS 25 REFER. B. Risks to be referred to the Company before any cover is issued 1. Any proposer or driver who has: (a) Been declined or refused insurance, or had terms imposed by any insurer; (b) Not held a full United Kingdom driving licence for 2 years; (c) Been convicted of any criminal offence other than motoring convictions; (d) Not been a permanent United Kingdom resident for the last 3 years. 2. Any proposal disclosing more than one driver aged between 21 and 24 years old. C. Foreign Use Cover can be extended for continental use in respect of a family type vehicle owned by the policyholder, or policyholders spouse if he or she is declared as a driver on this policy, for the purposes of a holiday or pleasure trip. Days Up to Group Comp. TP/FT Comp. TP/FT All plus I.P.T. at the prevailing rate Cover will only be provided at the above rates for the vehicles listed on pages 20 to 88. Any other vehicles should be referred for consideration. Cover will not be provided for a period exceeding 31 days in any one period of insurance. We will not extend Comprehensive or Third Party Fire and Theft policies beyond minimum EC cover for use other than that of holidays or pleasure trips. 8

11 General Instructions continued D. Teleprocessing Checklist Our Customer Services Team will be happy to process the following adjustments over the telephone. Please contact us on You are required to inform Covéa Insurance of any amendments to the policy within 7 days. Other than MID vehicle alterations, we will issue a Schedule in all circumstances and, where applicable a revised Certificate of Motor Insurance. Type of Amendment Change of Address Change of cover Additional Driver Addition/deletion of demonstration cover (Motor Trade Road Risks only) Increase/reduction of the Limit of Indemnity (Motor Trade Road Risks only) Substitution, addition or deletion of vehicle (MotorServ only) Motor Insurance Database vehicle alteration also by mid@coveainsurance.co.uk or via the website: Deletion of named driver (other than the policyholder or business partner) Lapses also by motortrade@coveainsurance.co.uk Cancellations also by motortrade@coveainsurance.co.uk Foreign Use Extension Duplicate Document General Corrections Premium Discrepancies We Require Details of the new address(please confirm whether change of private residential address, business premises or both) Cover note number Full details of the additional driver as per the additional drivers form on page 90 of this underwriting guide Cover note number Confirmation that the Certificate of Motor Insurance has been destroyed by your office Copy of photocard driving licence and counterpart/dvla verified motoring conviction information to be retained in your office Cover note number Deletion confirmation that the Certificate of Motor Insurance has been destroyed by your office Cover note number Cover note number Vehicle details Confirmation that the Certificate of Motor Insurance has been destroyed by your office Registration/trade plate number and addition/deletion date Cover note number Name of driver Confirmation that the Certificate of Motor Insurance has been destroyed by your office Confirmation that the renewal documentation has been destroyed by your office Reason for cancellation Cancellation date Confirmation that the Certificate of Motor Insurance has been destroyed by your office Dates of cover Vehicle, use and driver details Countries/destination Reason for the request (we will only issue a duplicate Certificate in the event that the original has been lost) Details of the correction i.e. spelling Risk/cover details Amendment requiring documentation Certain adjustments require documentation. To assist with this process we require the following documents within 7 days: Adding/deleting business partner or a change of trading name: Cover note; fully completed and signed proposal form; copy photocard driving licence and counterpart/dvla verified motoring conviction information (if adding new partner) 9

12 Motor Trade Road Risks Full and Part-Time Motor Traders A. Vehicles 1. The policy covers any motor vehicle: (a) The property of the INSURED; or (b) The property of the spouse of the INSURED if he or she is named as a driver under this policy; (c) Held in trust by or in the custody or control of the INSURED for their motor trade business; (d) Leased to the INSURED on a lease agreement with a minimum initial duration of 12 months. (Excluding steam driven vehicles, agricultural vehicles, horseboxes and vehicle transporters capable of carrying more than two vehicles) (Vehicles owned by additional drivers or hired/leased to the Insured on an agreement of less than 12 months do not fall within this definition) 2. The policy does not cover the following for social domestic and pleasure purposes: (a) Commercial vehicles over 3.5 tons G.V.W.; (b) Caravanettes, motorcycles, quad bikes, trikes, three wheeled vehicles or kit vehicles NB. The policy provides Third Party only cover for motorcycles, quad bikes or trikes used for business purposes to meet the requirements of the Road Traffic Act. We do not provide cover for persons wholly or partly engaged in motorcycle sales/repairs/service; (c) Vehicles manufactured in the USA or Canada unless specifically manufactured for use in the United Kingdom; (d) Vehicles having more than seven passenger seats; (e) Vehicles manufactured before 1 January 1980; (f) Vehicles which have been modified from the manufacturer s original specification to improve performance; (g) Vehicles with a fibreglass bodyshell. Important note: The Policy is to provide cover to enable Motor Traders to carry out their Motor Trade business. If the proposed risk is deemed unacceptable/unsuitable the Company reserves the right to decline the proposal or request supporting documentary evidence that the proposer is a Motor Trader. We will not provide cover where the most significant part of the risk presented relates to the Proposers and/or additional drivers personal vehicle(s). The proposal may be accepted but we may ask that the relevant vehicle(s) be insured separately. Vehicles that fall into this category include: AC American vehicles Aston Martin Bentley Bristol BMW M Series BMW Alpina Bugatti Dutton Ferrari Ford Mustang Ford Cosworth Honda NSX Jensen Lamborghini Lancia Delta Intergrale Lotus + Vauxhall Lotus Marcos Maserati Mercedes AMG models Mitsubishi Lancer + All Evolution models Morgan Noble Nissan Skyline Nissan Sunny/Pulsar GTIR Porsche Panther Reliant Rolls Royce Subaru Impreza (Turbo models WRX, STI, 22B, McRae & P1) TVR 3. Motor Insurance Database (MID) As a result of the Fourth EU Motor Insurance Directive the policyholder is obliged to provide the Motor Insurance Database (MID) with the registration numbers of all vehicles that are owned by or in his or her custody or control for motor trade purposes and will be driven, used or parked on a road or public place. All trade plates must also be disclosed. However, the policyholder is not required to provide details of customer s vehicles in his or her custody or control for repair or servicing etc. Details of the registration numbers should be provided on the BOS Statement of Fact or under question C5 of the Motor Trade Road Risks proposal at new business stage. Additions or Deletions of vehicles should be notified via the MID Updates function on the Covéa website and we will pass this information to the MID on behalf of the policyholder. The legislation requires that this information is provided immediately, but it is generally accepted that the time scale is based upon what is considered reasonable. All changes must be notified to us via the policyholder s insurance brokers within seven days which allows for the information to be transmitted to Covéa Insurance and the updating of the Motor Insurance Database within a reasonable period. It should be noted that the failure of the policyholder to provide this information may result in a prosecution and/or a fine. Furthermore, we may at our option reduce cover to Third Party Only which means damage to the insured vehicle will not be covered. 10

13 Motor Trade Road Risks Full and Part-Time Motor Traders continued B. Drivers 1. Full-Time Motor Traders (a) The proposer must be between 23 and 69 years of age for Third Party Fire and Theft and Comprehensive policies and between 30 and 69 years of age for Third Party Only policies; (b) All other named and approved drivers must be between 21 and 69 years of age; (c) A maximum of 4 drivers with Motor Trade use is permitted, with a policy maximum of 6 drivers (including SD&P only spouses); (d) All drivers must have held a full United Kingdom driving licence for two years and have been permanently resident in the United Kingdom for the last three years. 2. Part-Time Motor Traders (a) The proposer must be between 23 and 69 years of age for Third Party Fire and Theft and Comprehensive policies and between 30 and 69 years of age for Third Party Only policies; (b) All other named and approved drivers must be between 25 and 69 years of age other than the proposer s spouse who must be between 21 and 69 years of age; (c) Maximum Permitted Drivers are 3. Namely the Policyholder the Policyholders spouse (including common law spouse) and one named employee; (d) All drivers must have held a full United Kingdom driving licence for two years and have been permanently resident in the United Kingdom for the last three years. Young or inexperienced drivers are subject to the following excesses in addition to the standard policy excess: Drivers Under Inexperienced Drivers Over A copy of the driving licence (counterpart/dvla verified motoring conviction information and both sides of photocard) must be provided for all drivers. (a) All drivers must be named and approved; (b) All drivers must be either: (i) The proprietor; (ii) A director of the motor trade or MotorServ business proposed; (iii) A business partner; (iv) An employee; (v) A legally married spouse or long standing common law spouse/civil partner of (i), (ii) or (iii) above subject to the following: The couple must live as partners at the same address and have done so for at least one year; Where the relationship is other than legally married in addition to the above the proposer and partner must be aged 23 or over; (c) Cover for part-time employees (other than spouses of the insured) will be restricted to Motor Trade use only (no SD&P cover). Cover is not available to spouses of employees of the insured. Cover for part-time employees is only available to those in full time employment in an acceptable occupation. See Motor Trade Road Risks C2 for further details; (d) Cover is not available to persons residing or operating from active farms, licensed premises or guest houses or persons without a permanent place of residence; this includes any traveller site, any caravan site, holiday home parks or boats. (e) All business partners and or directors of the proposed business must be named on the policy Please refer to General Instruction A5 of this guide for any insured or named driver disclosing any MOTORING conviction, accident or claim. C. Occupations (see Motor Trade Road Risks C4 for vehicle breakdown recovery operators) 1. Full-Time Motor Traders (We define a full-time self employed Motor Trader as a person who derives his sole income from the Motor Trade business being proposed). Cover is available to persons who operate in the Motor Trade on a FULL-TIME basis (self-employed) either from business premises or from home and would include car dealers, mechanics, motor engineers, tuners, servicers, repairers, panel beaters, valeters or similar occupations. Cover is not available for any person who is a director of any other business or company outside of the Motor Trade Business being proposed. 2. Part-Time Motor Traders Cover can be provided for persons who operate a Motor Trade business on a part-time basis (self-employed) provided that they are in FULL-TIME EMPLOYMENT (ie they pay tax via the PAYE system and the employer pays employee National Insurance contributions on their behalf). Cover is not available to persons who own/operate further businesses or are self-employed 11

14 Motor Trade Road Risks Full and Part-Time Motor Traders continued outside of the Motor Trade. Cover is not available for any person who is a director of any other business or company outside of the Motor Trade Business being proposed. Unacceptable principal occupations for part-time motor traders or named driver(s) are as follows: Amusement Caterers, Artists, Bailiffs, Bar Staff, Bookmakers, Bouncers, Builders, Chauffeurs, Claims Management or Claims Assistance Company Employees, Clampers, Couriers, Club Owners/Workers, Club Steward, Company Directors, Debt Collectors, Door to Door Salespersons, Doormen, Fairground Workers, Farmers, Fast Food Delivery, General Dealers/Traders, Guest House Proprietors/Hoteliers, Journalists, Landlords, Landscape Gardeners, Log and Firewood Merchants, Members of the Entertainment/Fashion Industry, Mini-cab Drivers, Motor Cycle Couriers, Night-Club or Casino Workers/Owners, Non Vehicle Signwriters, Oil and Gas Rig Workers, Private/Public Hire Drivers, Professional Entertainers, Professional or Full-Time Amateur Sportsmen (including Managers and Trainers), Publicans, Retired Persons, Scrap Merchants, Shop Owners, Street or Market Traders, Students, Tarmac Layers, Taxi Drivers, Taxi Operators, Taxi Radio Controllers, Unemployed and Waiters. NB. This list is by no means exhaustive, and any related occupations would also be deemed to be unacceptable. If in doubt, please refer. 3. The following Motor Trade occupations are specifically unacceptable: (a) Specialists in the sale, repair, maintenance or servicing of vintage, classic, collectable, sports, high performance, prestige, fibreglass, American, Canadian, left-hand drive or Kit vehicles Specialist is defined as a person/business whose stated intention is to be wholly or partly engaged in any of the listed occupations/businesses; (b) Vehicle dismantlers, breakers and scrap/salvage dealers/merchants or salvage repairers; (c) Agricultural or plant engineers/dealers or repairers; (d) New and second hand parts dealers and Motor Factors; (e) Vehicle accessory dealers/salesmen/installers (including audio and telecommunication equipment); (f) Vehicle brokers, sourcers or fleet/vehicle management businesses/companies; (g) Tyre dealers and wholesalers; (h) HGV recovery operators; (i) (j) Motorcycle, coach, bus, HGV, caravan, or motor home repairers or dealers; Taxi drivers, dealers, repairers; (k) Vehicle collection or delivery agents and dealer transfer agents; (l) Vehicle repossession agents or operators; (m) Business/ Company liquidators; (n) Auctioneers; (o) Vehicle importers/exporters this includes any person wholly or partly engaged in the sale or repair of any vehicle imported other than by the manufacturer; (p) Vehicle lessors and self drive hire operators; (q) Vehicle assessors or independent consulting engineers; (r) Claims Management or Assistance Companies; (s) Boat or Marine repairers or dealers. (t) Petrol or fuel filling stations 4. Vehicle Breakdown Recovery Operators Any proposal form disclosing that more than 25% of the business activity is involved in vehicle breakdown recovery will be deemed to be a Vehicle Breakdown Recovery Operator. A fully completed proposal form should be submitted for referral together with full details of the vehicle/s, a photograph (if available) and details of any security devices fitted (copies of installation certificate/s for alarms/immobilisers etc should be provided). Any proposal showing an involvement of less than 25% with vehicle breakdown recovery where the following criteria is met may be quoted without referral: (a) The driving restriction is Insured only or Insured + one spouse or employee; (b) The level of indemnity requested is a maximum of 12,500 for full-time motor traders or 10,000 for part-time motor traders; (c) The area rating is -1 to 6. These risks are subject to a 35% premium loading. For Comprehensive cover, please use the 250 excess/ Comprehensive rates. Please note however, that the policy will be subject to a 500 ADF&T excess. For Third Party Fire and Theft cover, the policy will be subject to a 500 F&T excess. 12

15 Motor Trade Road Risks Full and Part-Time Motor Traders continued Risks that do not meet the above criteria or where you require a definitive quotation should be referred with a fully completed proposal form etc. 5. Occupation Loads or Discounts (a) Servicing and Repairs: any proposal involved solely with servicing and repair of vehicles, with no involvement in any sales or valeting, can be discounted by 11%. (b) Sales: any proposal disclosing any involvement with sales, and subject to there being no involvement in valeting, is to be issued with no occupation load or discount. (c) Valeting: any proposal disclosing any involvement with valeting must be loaded by 10%. For any proposal declaring an involvement in Breakdown Recovery please see section 4 for further instructions. D. Premium Calculation Please refer to Broker Online for the current rates. Refer to page 91 for a calculation sheet. This form should be photocopied, completed in full and submitted with the proposal. 1. Partnerships Use the Proposer/Policyholder rates for youngest partner and the Fellow Director/Partner rates for the other business partners. 2. Rating Area Please refer to Broker Online for the current rating areas. For Motor Trade calculations the highest rating area of the business address or policyholders home address forms the basis of rating. If the proposer is mobile the home address should be used. 3. Application of rates to each driver Each driver is rated individually by: (a) Age (not age of the proposer); (b) Area; (c) Relationship: Insured Business Partner Employee Spouse inc. Business Use Spouse exc. Business Use Base rate 39% discount 25% discount 77% discount 79% discount (d) Cover (the same cover must apply to all drivers named although the Company may vary this for underwriting reasons); (e) Premium Loading applied for accidents, claims or convictions is applied to the driver(s) with the demerits (refer to General Instruction A5 of the guide). 4. No Claim Discount (a) NCD is allowed from the total premium for the Policy; (b) NCD Scale: 1 year 18% 2 years 28% 3 years 34% 4 years or more 51% NCD Step-Back Scale: If a claim is made or is outstanding at renewal date and the current NCD entitlement is 3 years or 4 or more years, the NCD will be reduced to 1 year or 2 years respectively. Two or more claims in any one period of insurance will result in the disallowance of all no claims discount. (c) Protected No Claims Bonus is available for full time Motor Traders who have 4 or more years MOTOR TRADE No Claims Discount and who have not had a fault claim in the last 3 years. The additional premium, after allowance of the NCD as above, is 5% of the total premium or a minimum of 50 before ipt. Protected No Claims Discount allows up to 2 fault or non-recoverable claims in any consecutive 3 year period before the no claims bonus is stepped back. If there are 3 or more claims in the 3 year period the normal step-back scale as above applies; (d) Please note, we are able to accept telephone confirmation of the No Claims Discount, please see page 89 for telephone No Claims Discount confirmation form; (e) A discount which is being earned on a protected or a stepback system where a fault or outstanding claim has occurred in the last period of insurance will be accepted on our stepback NCD scale indicated above, i.e. on 18% or 28% NCD; (f) We will only allow No Claims Discount from a cancelled private car, light CV or motor trade policy previously held by the proposer; (g) If the proposal is in the name of a limited company NCD will not be allowed from a policy held by a named driver. Similarly NCD in the name of a limited company will not be allowed for a proposal in the name of an individual; (h) Requests to allow NCD for proposals in the name of a partnership will be regarded as an introductory discount, if the evidence of NCD is only provided in respect of one partner; 13

16 Motor Trade Road Risks Full and Part-Time Motor Traders continued Own Customers Vehicle Vehicle Loading Indemnity Indemnity 5,000 7,500-1% 5,000 10,000 3% 5,000 12,500 7% 5,000 15,000 12% 5,000 20,000 15% 5,000 25,000 20% 5,000 30,000 24% 7,500 7,500 NIL 7,500 10,000 4% 7,500 12,500 8% 7,500 15,000 13% 7,500 20,000 17% 7,500 25,000 21% 7,500 30,000 25% 10,000 10,000 5% 10,000 12,500 10% 10,000 15,000 14% 10,000 20,000 18% 10,000 25,000 22% 10,000 30,000 26% 12,500 12,500 11% 12,500 15,000 16% 12,500 20,000 19% 12,500 25,000 24% 12,500 30,000 28% 15,000 15,000 17% 15,000 20,000 21% 15,000 25,000 25% 15,000 30,000 29% 20,000 20,000 22% 20,000 25,000 27% 20,000 30,000 30% 25,000 25,000 28% 25,000 30,000 32% 30,000 30,000 33% (i) NCD is only transferable from a policy that expired within 12 months of inception of the proposed insurance. Any proposal where NCD expired more than 12 months ago will be issued at a gross premium. We also reserve the right to ask for an explanation for any gap in cover. 5. Introductory Discount (a) Any proposer entitled to No Claims Discount under a current private car/commercial vehicle policy but wishing to retain that policy will be allowed an introductory discount, on above scale, equivalent to the number of years entitlement, UP TO A MAXIMUM OF 51%. Subject to the normal evidence of entitlement; (b) Any proposer with a minimum of 2 years proven claims free driving experience from their spouse or employers policy will be entitled to a maximum of a 18% introductory discount. Proof of the claim free driving must be obtained and verified in the normal way. 6. Limit of Indemnity (a) Full-Time Motor Traders: (i) The Comprehensive Motor Trade Road Risk rates provide cover up to a maximum of 7,500 in respect of loss or damage to any one insured vehicle. This may be extended to 10,000, 12,500, 15,000, 20,000, 25,000 or 30,000 by adding 5%, 11%, 17%, 22%, 28% or 33% respectively to the total premium for all drivers named; (ii) For full-time Motor Traders, not involved in vehicle sales, the indemnity can be split between own and customers vehicles. Split Indemnities are only available with Comprehensive cover. The options for split indemnities are shown in the table together with the loading to be applied to the total premium for all drivers named; (iii) The Third Party Fire & Theft Motor Trade Road Risk rates provide cover up to a maximum of 5,000 in respect of loss or damage to any one insured vehicle. This can be extended to 7,500 by adding 5% to the total premium of all drivers named; (b) Part-Time Motor Traders: (i) The Comprehensive Motor Trade Road Risk rates provide cover up to a maximum of 7,500 in respect of loss or damage to any one Insured Vehicle. This may be extended to 10,000 or 12,500 by adding 5% or 11% to the total premium for all drivers named; 14

17 Motor Trade Road Risks Full and Part-Time Motor Traders continued (ii) The Third Party Fire & Theft Motor Trade Road Risk rates provide cover up to a maximum of 5,000 in respect of loss or damage to any one insured vehicle. This cannot be extended. NB: Claims payments in respect of policyholders own personal vehicles rendered a total loss will be calculated on a trade value basis. Claims payments in respect of customers vehicles, in the custody or control of the policyholder, rendered a total loss will be calculated on a Market Value basis. The selected limit of indemnity should reflect this and will apply on a per vehicle per incident basis 7. Demonstration Cover The policy can be extended to include demonstration cover at an additional premium of 5% of the total premium. The cover provided extends the policy to allow the prospective purchaser to drive an insured vehicle before deciding on purchase provided that the person: (a) Holds a full UK licence; (b) Is not a family member of the insured or any of the named drivers; 2. Renewal Assessment At renewal of a Motor Trade Policy the Policyholder may be asked to complete a Motor Trade Road Risks proposal form, or provide evidence of their Motor Trade Activity, prior to the premium being quoted and documents released. The absence of this requirement, however, does not remove the proposers obligation to disclose any material changes that may affect the policy. These would include any: Change of address or occupation; Motoring and criminal convictions and pending prosecutions; Motor accidents, losses or claims involving any person who may drive any insured vehicle; Physical or mental conditions suffered by any person who may drive any insured vehicle; Change of use of any insured vehicle or inclusion of additional driver(s); Modifications to either the engine or structure of any insured vehicle. (c) Is not in the employment of the insured; (d) Does not reside at the same address as any declared driver on the certificate of insurance; (e) Observes, fulfils and is subject to the terms and conditions of this policy; (f) Is accompanied at all times by the insured or a person named on the certificate of insurance. 8. Occupations According to the Motor Trade occupation a discount or load may be applied. Please refer to Section C5: Occupations Loads or Discounts for full information. E. Renewal 1. Premium/Excess A minimum policy excess of 250 for Accidental Damage, Fire and Theft claims will apply to new proposals. Existing policies in force before 1 December 1997 that are subject to a 100 accidental damage excess and a 250 fire, theft or attempted theft, or malicious damage excess can be renewed with the existing excesses. The premiums are calculated by adding 7.5% to the published 250 excess rates. A Policyholder can elect to increase his excess to 250, 500, 750 or 1,

18 MotorServ Full and Part-Time Businesses A. Vehicles 1. Specified vehicles: (a) Up to 3 specified vehicles, which must be owned by the policyholder, may be insured (a premium is required for each vehicle). However, there is no requirement that all the vehicles owned by a MotorServ policyholder must be covered by the MotorServ policy; (b) Cover may be issued only for those vehicles for which a group rating is allocated by the Company (see Vehicle Groups) or any commercial vehicle (with no more than 3 seats including the driver) up to 3500cc in accordance with the following conversion chart: Left hand drive vehicles refer. Engine Size Group up to 1000cc 9 up to 1300cc 11 up to 1600cc 13 up to 1800cc 17 up to 2000cc 19 up to 2500cc 23 up to 3000cc 25 up to 3250cc 27 up to 3500cc 29 over 3500cc refer for quotation (c) Age of vehicle discounts are only applicable on Comprehensive policies. 2. Vehicles to be referred to the Company before any cover is issued: (a) Any vehicle modified or altered in any way to increase performance or carrying capacity; (b) Any vehicle modified, customised or converted from the manufacturers original specifications either mechanically or cosmetically, whether or not the modifications improve performance, even if those modifications were not carried out by the proposer; NB: A commercial vehicle modified from standard to enable it to carry vehicles for accident or breakdown recovery is acceptable provided that the vehicle has been suitably tested and licensed by the appropriate authorities. In addition, if the seating capacity has been increased for that purpose (maximum 7 seats including the driver) the premium should be increased by 15%. (c) Any commercial vehicle over 3500cc; (d) Any vehicle with a total value greater than 20,000 including fixtures and fittings (the maximum cover for fixtures and fittings is 2,000). 3. Unacceptable vehicles: (a) Any goods vehicle with a gross vehicle weight (G.V.W.) in excess of 7.5 tons; (b) Any private car that is not allocated a group rating by the Company (refer to Vehicle Groups); (c) Any vehicle with more than 7 seats, including the driver; (d) Vehicle transporters (and/or trailer) capable of carrying more than 2 vehicles; (e) 3-wheeled vehicles; (f) Motor cycles; (g) Vehicles which have been declared a total loss by any insurer; (h) Any vehicle manufactured before 1990; (i) Horseboxes and Agricultural Vehicles. 4. Replacement vehicles The Policyholder must immediately advise any change of the specified vehicle(s). Cover should only be issued for acceptable vehicles (see Vehicle Groups). A cover note should be issued and forwarded to the Company along with the obsolete Certificate for the vehicle being replaced. Additional/ refunded premiums will be calculated on a pro-rata basis. B. Drivers A copy of the driving licence (counterpart/dvla verified motoring conviction information and both sides of photocard) must be provided for all drivers. 1. All drivers must be named and approved. 2. All drivers must be either: (a) The proprietor; (b) A director of the motor trade or MotorServ business proposed; (c) A business partner; (d) An employee; (e) A legally married spouse or long standing common law partner/civil partner of (a), (b) or (c) above. 16