Really need a bit of advice please?

cavework

OK ..
Our employees are supplied with a van for work , usually 2 people per vehicle and both insured to drive.They keep the van at home when not in use and the insurance covers that.
One team were not at work today ie the van was not being used.
Just had a phone call .. employees OH had used van to collect Xmas Turkey! ( He has Trade insurance?) and got hit from behind by another vehicle whilst stopped at traffic lights..
end result is the van (04 Fiesta) is now a right off..
He has assured me his Insurance Company will deal with the claim because he has Trade insurance?
I have told him we will need a hired replacement vehicle by the 5th Jan..
Do I need to inform our insurance company and apart from being really angry.. it's flippin the day before Xmas Eve!, could anyone give me advice as to where we as a company stand legally to ensure we do not have to cover any costs in replacing the vehicle ( including sign writing ) ..
xx

raskazz

It probably won't be covered by their trade policy as the vehicle won't be listed on their schedule and it was not in their custody or control for motor trade purposes. Unless of course they are going to lie to the insurer and commit fraud.

Best option is to claim from the insurer of the third party vehicle.

mattymoo

And discipline the staff member who allowed their partner to drive.

cavework

OK .. the third party was at fault .. alledgedly.. but in the meantime we are one van down and desperately need a replacement hire vehicle by the 5th of 2010..
So should we leave it to the insurance company of the driver or involve our own insurance company?

cavework

Sorry for pushing this question ..
is there anyone who 'works or used to work ' for an insurance company
who can give a bit of advice here?
If not ..
Happy Xmas and Best wishes for the New Year,
especially to those starting up their own business..:T
xxx

mattymoo

There's a few of us but I'm afraid we're all on holiday now.



Not really but I suspect that is going to be the problem you have here. As Raskazz says, it looks like the drivers motor trade cover is going to be non-starter.

Ideally the claim should be against the third party that caused the accident but their insurers will not do anything till they have reported it to them. If they decide to do that after the hols then the chance of getting a hire van in time are remote.

You're own insurers might be the best bet if they are covering any driver on the policy. If it is limited to employees only then you have no cover.

Most insurers do maintain a call centre presence over the holiday periods (excluding bank hols) but a lot of the claims handlers do tend to take the xmas-new year period off so delays will be inevitible.

My choice would be to pursue the third party. You can find out who they are insured with using the askmid site . http://www.askmid.com/
Enter the tp registration number on the free part* first (just in case it is not insured, saves wasting money). If the car is insured then pay the fee (£3.50) and get the insurance details.

* You're not really supposed to do the free part if it is not your vehicle, but everyone does.

dacouch

If they have a motor trade policy I assume they have a"Road Risk" only policy that is designed for traders who do not have premises. The Insurers who offer these are notorious for looking for ways to get out of paying claims and when they do accept a claim they will pay a much lower amount than you expect.

He is likely to have an excess of between £250 and £500.

Your best bet would be to claim directly off the other driver's Insurance as there will be no excess and they will often provide a replacement vehicle.

As Raskazz has pointed out the blokes Motortrade will not cover him to drive cars that are not in his custody for Motor trade purposes eg he is repairing it or buying selling it. The exceptions to this are personal vehicles although they need to be declared to the Insurers / Database within 7 days of taking possession. A lot of Motor trade policies do not like comercial vehicles.

When he presents the claim the Insurers are likely to request proof the vehicle was in his custody for motor trade purposes