Car insurance .. Limited mileage, what does it mean?

InsideInsurance

Quentin wrote: »

In the case of this latest arrogant broker to contribute, I think the word you needed could be pinhead rather than stamp!

I was making assumptions on their writing style and the number of attempts required to get it right etc... think we are probably still in the crayon space

dacouch

Random thread for such a knowledgeable former Insurance broker to dig up.

FlameCloud

This made me smile alot.

Shortly before xmas I had a settlement meeting with a broker. Claim was for a fire in a factory in the far east, but owned by a UK company so insurance was through here. Claim was around £10m.

Broker has lots of qualifications, including CIB from the CII. In general loves to think of himself as a big shot. However, he had several flaws-

1. He fundamentally cannot understand the difference between an accounting rate of gross profit and an insurance rate of gross profit, leading to...
2. Hugely underinsuring the BI element of cover, leading to a real possibility the UK company will go under as a result.
3. Even if he had got the sum insured correct, is setting an indemnity period of 12 months remotly sensible for a factory whose tooling takes at least 18 months to comission and deliver, and this is not even including the ordering or installation?

Still, at the end, as he so brilliantly advised us and his (rather annoyed) client, he was the expert broker.

forgotmyname

thehalk wrote: »

No disrespect to anyone that's posted so far but we could do with someone that knows what they're talking about. Step forward former insurance broker...!!

To my mind, there is potentially a fundamental flaw in this approach since even if I do have a mileage restriction built into my policy, what's to stop my friend borrowing my vehicle from me for a period and driving it under his own cover and accumulating additional miles? In this instance, my insurance policy should not become invalid since these miles are nothing to do with me...

Took you 7 months to come up with that.. wow...

Its down to you to prove to your insurer why they should pay. Whilst possible ending up with a large claim against you.

So my original post made 7 months ago is still right.. Check the wording on your policy.

I wonder who here claims to do less miles than they really do???

dacouch

FlameCloud wrote: »

This made me smile alot.

Shortly before xmas I had a settlement meeting with a broker. Claim was for a fire in a factory in the far east, but owned by a UK company so insurance was through here. Claim was around £10m.

Broker has lots of qualifications, including CIB from the CII. In general loves to think of himself as a big shot. However, he had several flaws-

1. He fundamentally cannot understand the difference between an accounting rate of gross profit and an insurance rate of gross profit, leading to...
2. Hugely underinsuring the BI element of cover, leading to a real possibility the UK company will go under as a result.
3. Even if he had got the sum insured correct, is setting an indemnity period of 12 months remotly sensible for a factory whose tooling takes at least 18 months to comission and deliver, and this is not even including the ordering or installation?

Still, at the end, as he so brilliantly advised us and his (rather annoyed) client, he was the expert broker.

I know the sort of broker you mean, very stupid under insuring the BI, did the insured not do an accountants annual declaration?

Twelve months BI for that size manufacturer is very stupid, hopefully the brokers bad advice is documented and comes back to haunt him.

People do not understand the importance of BI, I see people trying to cut corners on their Insurance all the time and they make the mistake of cutting their BI. Here's someone on MSE not realising the importance https://forums.moneysavingexpert.com/discussion/4400703

FlameCloud

He was just the type of person that likes people to think that he knows everything about everything and will not accept or admit that he doesnt know something rather to save face.

They did provide the accounts, but it seems he was either too lazy/didn't realise the difference between how the insurers define gross profit and how his clients accountant defined it, which from experience is a mistake a large amount of brokers make.

We have a colleague at work who practically wrote the CILA manual on BI and he appears to be on a campaign to get brokers to go for at least 24 months, if not more for almost all as it is a compltly false economy- alot of business claims the BI dwarfs the MD loss as I'm sure you've seen and brokers tend to ignore it, either through ignorance or it appears an easy way to get the premium down.

rs65

FlameCloud wrote: »

We have a colleague at work who practically wrote the CILA manual on BI and he appears to be on a campaign to get brokers to go for at least 24 months,

Does he speak at conferences, by any chance?

dacouch

rs65 wrote: »

Does he speak at conferences, by any chance?

I think he made post seven.