Continuum Insurance Brokers News Blog
Posted on:
"WINTER TYRES ON YOUR CAR?"
Following the heavy snow last winter many motorists looked into the option of using winter tyres. There is no uniform view amongst insurance companies in relation to vehicles that have been fitted with winter tyres. As a result the Association of British insurers has issued a statement incorporating a commitment from some insurance companies on the subject. To read this please go to: Winter Tyres - The Motor Insurance Commitment
If your insurance company are not on the list we suggest that you speak to them before buying or fitting winter tyres to your vehicle
Posted on:
"WHEN IS A STORM NOT A STORM"
With winter at last arriving and bad weather taking its toll in parts of the country we have been looking at some recent decisions on storm claims as the Financial Ombudsman Service (FOS) has had some disputes referred to it on the subject.
In deciding whether a storm occurred, the FOS will consider local weather reports and in general they require evidence of high winds as well as rain, hail or snow. They do not, however, require the wind to be a specific speed on the Beaufort scale, contrary to the approach taken by some insurers.
If it is established that a storm occurred at the time of the damage, another point of contention can be whether the damage was actually caused by the storm or by wear and tear, gradual deterioration or poor maintenance.
To counter this type of argument a client should be advised to produce evidence of good repair, prior to the storm, for example with photographs or repair and maintenance invoices, or even a letter or statement from a workman who has inspected or worked on the property recently.
In deciding what the dominant cause was, the FOS will look at all of the evidence available. In some cases insurers may produce an "expert report" commenting that the type of damage could not have been caused by weather, but was more indicative of gradual deterioration. This is likely to cause problems for a client, particularly where the claim is modest because under the FOS cost rules, any money spent on a report from another specialist to attempt to counter the insurer's report, is not likely to be recoverable under an FOS ruling. (It may be if court proceedings are required).
If we see a repeat of the heavy snow of last winter, this will bring its own problems. For example, in a recent case decided by the FOS, where heavy snow lying on guttering for a number of days caused damage, the claim was rejected on the basis that the damage had not been caused by a storm. In that case the FOS commented that the claim would have been covered by an accidental damage section in the policy, but unfortunately the customer did not have accidental damage cover. This is a point worth considering when reviewing your household insurance as many people would expect this type of claim to be covered, but without accidental damage cover, it is likely that the claim would be rejected.
Posted on:
"ADVICE ON CLAIMS ARISING FROM CURRENT DISTURBANCES"
If you or your business have been the victims of loss or damage during the recent events in London and elsewhere it is important that you are aware of what you need to do to make a claim.
If the disturbances are declared to be a "riot" as defined by the Public Order Act 1986 your insurer will be able to recover some of their outlay from the local police authority but there are specific time lines to meet for insurers to be reimbursed by the local police authority. Under the relevant legislation any such claim must ''be made in writing and received by the local police authority within 14 days of the alleged incident".
As a result Insurers typically include within their Claims Notification Clause to the policy a requirement for any claim for riot and/or civil commotion to be notified to Insurers immediately with full supporting documentation. This needs to be received within seven days of the incident occurring to allow insurers time to submit a claim to the police authority and prevent a recovery action being turned down by the police authority on basis that the action is time barred..
Anyone claiming needs to be aware that they must notify their Insurers immediately of any damage but equally important is that they must be able to quantify and substantiate their losses with potentially both a schedule of loss and statement of truth within a week of the incident occurring.
It remains to be seen whether insurers strictly enforce the policy condition relating to such notifications of claim but in the absence of any advice to the contrary we would encourage you to stick to the above timescale.
Posted on:
"No Hiding Place"
The next stage of the Continuous Insurance Enforcement initiative between the Motor Insurers' Bureau and the DVLA will take place towards the end of June 2011 when the issuing of the first of the Insurance Advisory Letters (IALs) begins. These letters will advise the registered keeper that there does not appear to be a motor insurance policy record on the Motor Insurers Database for their vehicle/s.
- The "IAL" will advise them to either contact their insurance provider to check their records or, if the vehicle is uninsured to take out a policy immediately or declare it as off road (SORN) if it is not in use and is being stored on private land or make a free check at www.askMID.org.uk.
- In the instance of a clerical error or administrative oversight the recipient can get the matter rectified by contacting their insurance provider as soon as possible and there will be no further action. Alternatively they may need to declare the vehicle as SORN.
- If the registered keeper does nothing then they will receive a fixed penalty notice of £100 from the DVLA along with instruction to take out a motor insurance policy.
- Should the registered keeper take out a motor insurance policy they can do so immediately, pay the fixed penalty and there will be no further action as long as that policy remains in force.
- If the second enforcement letter from the DVLA is ignored then the registered keeper will be issued with a final notice (which outlines their options to contest) and then subsequently with a summons.
- Once the final notice has been issued their vehicle may be clamped, seized and destroyed.
Below: A video with more information about the "Change in Motor Insurance Law to Affect All Drivers in Great Britain" published by askMID on YouTube.
Posted on:
"Could a bad debt put you out of business?"
One of the biggest worries for all businesses in the midst of a recession is the threat of a customer going bust owing them money. For many, a large bad debt can be the tipping point that leads to their own demise. The money owed to businesses for their goods and services can comprise up to 40% of the assets on a company balance sheet so it is surprising how few businesses insure against the risk of losing money to a bad debt.
Research by Continuum Insurance Brokers of Hertford revealed that some of the reasons for this were companies either not knowing it was possible to insure for such eventuality or not knowing who to approach to obtain such cover as it is such a specialist area.
In order to fill this gap Continuum have started a new Credit Insurance division aimed at providing local businesses with access to such cover. We have recruited Geoff Yeates, someone with 30 years experience in the field and well known to all the major players in the market.
Managing Director of Continuum, Bernard Murphy said "It was quite a coup for us to recruit Geoff as he had many other offers so I am absolutely delighted that he has agreed to set up this new division of our business. It enables us to broaden the range of products available to local businesses and will be a real asset to those businesses for whom the threat of a bad debt could be catastrophic".
For further information on how this can help your business call Geoff Yeates at Continuum on 01992-553611
Posted on:
"CONTINUMM AT TWICKENHAM"
Continuum Insurance Brokers name was on rugby shirts at Twickenham this month during the England 6 Nations games against Scotland and France.
Unfortunately our marketing budget does not stretch to sponsoring the national side but the mike runners (they are the youngsters on the side of the pitch holding microphones that look like furry sticks) were chosen from Richard Hale School in Hertford and here they are posing with former England International Jeremy Guscott wearing their Continuum sponsored school rugby shirts.
Blog News
