Motor Fleet Updateon
Following large losses recently incurred by motor fleet insurers, many of them have begun to ask for questionnaires to be completed at renewal focusing on which company vehicles are being included and who can drive them. As such, we thought it would be an appropriate time to provide a quick refresher on what a fleet policy does and doesn't cover:-
What vehicles can I insure under my fleet policy?
Any vehicle which is owned and registered to the company (and in some instances director owned vehicles although these need to be referred to the relevant insurer). The fleet will also cover hired-in vehicles or loaned/courtesy car vehicles. Additionally, vehicles leased under a lease agreement to the company or a director of the company can be covered as long as they are notified to us using an MID declaration form.
What vehicles can't I insure under the policy?
- Vehicles which are insured elsewhere under a private policy.
- Vehicles that are not registered in the UK or registered in the name of the
policy holder, i.e. the company name. An exception to this may include a
vehicle owned by a director but in such a case the vehicle must be
disclosed in order for a specific certificate to be issued.
Does my fleet policy cover me to drive any vehicle?
No, you can only drive vehicles that are noted on your policy. The fleet policy does not cover driving other cars on a third party basis like most private car policies. This is because the cover would be too wide as one fleet policy would effectively cover any vehicle.
Who can drive my vehicles?
Most fleet policies are usually arranged on an any authorised licensed driver basis meaning that anyone can drive following permission of the company/directors. However, it should be noted that a company fleet policy effectively covers a company's vehicles for use by employees on company business and they are not intended as a cheap way of insuring vehicles for young drivers (a scam known as "fronting").
There also may be certain driver restrictions on high powered vehicles which may exclude drivers under the age of 21/25/30 and these will be shown in your policy schedule. Drivers who have serious convictions on their driving licence must be referred to insurers before allowing them to drive. A serious conviction would be any conviction code that begins with the following letters: AC, BA, DD, DR, IN, MS, NE, TT, UT or XX . We recommend that all fleet operators take photocopies of all drivers' licences at least once a year.
What is the Motor Insurance Database (MID)?
This is a government database which stores the details of every insured vehicle in the UK. It exists to reduce the number of uninsured cars on the road as well as assisting with claims that happen in the EU. The police use this to identify uninsured vehicles using 'Automatic Number Plate Recognition' (ANPR) cameras which are now fitted to most police cars. They can also check who a vehicle is insured with and who is named to drive on the policy. This is a legal requirement for anyone who holds a motor fleet or motor trade policy.
What vehicles need to be noted on the MID?
All permanent vehicles that are on your fleet policy need to be noted as well as any temporary vehicle(s) that you may have for a period of 14 days or more. You don't need to note temporary vehicles that you have for less than 14 days although you will still need to show these on the declaration form that you forward to us.
When do I need to update the MID?
You should try to update the MID immediately via www.midupdate.com , however you have 7 days from the date you take delivery of a vehicle to note it on the website.
Why do I need to send you a declaration form every time I do a change as well as update the MID website?
This is for a number of reasons. Declarations are usually submitted to underwriters every quarter or every six months which is when you will be charged/credited for any adjustments that took place in that period. Additionally, if you were to add a high powered vehicle to the policy the likelihood is that there would be terms applying to the vehicle such as the exclusion of young drivers or the requirement to have a tracker fitted. If we are not advised of the changes to your schedule then you may not be covered in the event of a claim and it is therefore imperative that not only do you advise us of the changes but you also update the MID at the same time.