Insurance on Company car

DStevens

Hi. I have a company car. I do very high mileages in it (40,000 p.a.).


I recently had a minor bump. Fault is ambiguous. Other car on the wrong side of the road etc.. Damage is light bumper damage to my car, and some side scraping on the other. No police involvement, no charges of "careless driving" or anything like that.


However, my company is now demanding that I pay for the damage (£800) and are planning to deduct it from this month's salary.


Some months ago, they had sent a "revised" company car policy, stating they reserved the right to do this. I refused to sign, feeling that, being such a high mileage driver, it was not right that I should be put at such a financial risk considering the mileages involved, and adequate insurances should be in place for field engineers for such matters.


I've notified them that I am refusing to pay, and consider any deductions from my salary would be considered an unlawful deduction from salary.


Any other advice?

LilElvis

Their argument could well be that you have effectively accepted the revised policy by continuing to drive the car.

sangie595

DStevens wrote: »

Hi. I have a company car. I do very high mileages in it (40,000 p.a.).


I recently had a minor bump. Fault is ambiguous. Other car on the wrong side of the road etc.. Damage is light bumper damage to my car, and some side scraping on the other. No police involvement, no charges of "careless driving" or anything like that.


However, my company is now demanding that I pay for the damage (£800) and are planning to deduct it from this month's salary.


Some months ago, they had sent a "revised" company car policy, stating they reserved the right to do this. I refused to sign, feeling that, being such a high mileage driver, it was not right that I should be put at such a financial risk considering the mileages involved, and adequate insurances should be in place for field engineers for such matters.


I've notified them that I am refusing to pay, and consider any deductions from my salary would be considered an unlawful deduction from salary.


Any other advice?

Yes, check your contract. Because, policy signed or not, I suspect it allows them to make the deduction. By continuing to work you probably affirmed the condition, signed or not. Refusing to sign something doesn't mean it can't be done. What you consider or believe is not relevant - whether they can do it or not entirely depends on the contractual conditions.

What are your alternatives? They do not have to permit you use of a company car - you use it under their conditions or not at all. Will you have a job if you have no company car? How long have you worked there?

In principle, I agree with you that the cost is unreasonable to bear. But that doesn't make it unlawful, and it might just be that it is lawful. Or that you might end up with the £800 and no car/ job. I don't suppose you are in a union?

Tony_H_3

If you are paid monthly and you work 160 hours in that month, then your employer MUST leave you with 160 * National Minimum Wage. If you are entitled to £7.50 this would equate to £1200 for the month.

If you earn under £2000 per month, then the company would have to take it in at least 2 separate payments.

marliepanda

Tony_H wrote: »

If you are paid monthly and you work 160 hours in that month, then your employer MUST leave you with 160 * National Minimum Wage. If you are entitled to £7.50 this would equate to £1200 for the month.

If you earn under £2000 per month, then the company would have to take it in at least 2 separate payments.

Nope:

A deduction can’t normally reduce your pay below the National Minimum Wage even if you agree to it, except if the deduction is for:

tax or National Insurance
something you’ve done and your contract says you’re liable for it, eg a shortfall in your till if you work in a shop

ohreally

Is £800 greater than the insurance execs?

What mechanisms exist for the third party to be pursed for liability? Why should liability fall to you in a dispute (and who has decided this)?

DStevens

Hi, thanks for the reply.

I'll try answer all points. Apologies if they seem scrambled...

I am in a union, and I'm waiting for their reply, I just thought I'd post here too, as it's been a help in the past..

No company car mean no job.

I've worked there for 3 years.

As to excess, I can only assume £800 is well over the excess amount, as they are not supplying any insurance details other than the statutory "certificate."

As an additional point, I've raised this as a grievance.

TELLIT01

It seems to be more common now that companies will recover their costs from employees if they are deemed to be at fault for damage to company vehicles. It seems in this instance that it's being treated as 'knock for knock' by the insurers, so blame has been attached to you.
If £800 is more than the excess then I don't think it reasonable for you to be expected to pay the full amount, but it's what in your contract that matters, not opinion.
One place I worked introduced this system due to just one or two company car drivers (out of about 20) who believed they had no responsibility to treat the vehicles with care. One of the culprits actually said he didn't give a **** because it wasn't his car!

DStevens

Hi.

The latest on this is that the £800 is the excess on the insurance.
To be frank, this is unacceptable. The company has over 100 cars, and as in Tellit01, case, a few are irresponsible drivers. I feel I am clearly being discriminated against because of other drivers.

My driving experience is (Or at least was) that I have (or had) 17 years unblemished driving, including a maximum no claims bonus, I was an instructor for the IAM, and taught Ambulance drivers advanced driving. My previous insurance as a contractor (including business clauses) was £240 per annum with a £100 excess, and now they want £800 for the same liability?

I've raised this as a grievance with the company involved.

TELLIT01

DStevens wrote: »

Hi.

The latest on this is that the £800 is the excess on the insurance.
To be frank, this is unacceptable. The company has over 100 cars, and as in Tellit01, case, a few are irresponsible drivers. I feel I am clearly being discriminated against because of other drivers.

You are not being discriminated against assuming all other drivers have to pay the same if they are deemed to be at fault, even partially, for an accident. You are being clobbered because of other bad drivers but that's a different matter.
I've been driving since the mid 70's (showing my age) and had one accident where I was at fault back in 1992. That would make no difference on the excess on company insurance as it's normally blanket cover.

sangie595

DStevens wrote: »

Hi.

The latest on this is that the £800 is the excess on the insurance.
To be frank, this is unacceptable. The company has over 100 cars, and as in Tellit01, case, a few are irresponsible drivers. I feel I am clearly being discriminated against because of other drivers.

My driving experience is (Or at least was) that I have (or had) 17 years unblemished driving, including a maximum no claims bonus, I was an instructor for the IAM, and taught Ambulance drivers advanced driving. My previous insurance as a contractor (including business clauses) was £240 per annum with a £100 excess, and now they want £800 for the same liability?

I've raised this as a grievance with the company involved.

That doesn't surprise me at all - business excess amounts are often chosen to reflect reducing costs to the business. So your record is, unfortunately, irrelevant; and in law this is not discrimination.

I think on this one you need to stick with your union, whatever they advise. Because despite your 3 years, if you have no company car because the employer refuses to let you have one (which they can do) then the employer can dismiss you and that would be fair in law. It qualifies as "some other substantial reason" - if you refuse to comply with the employers company policy on a company car, then you can't have the car; and that would mean that (if the employer will accept it) you would have to provide your own. And one dismissal will soon put anyone else in line if they were thinking of getting out of line. So the only thing that may save your job here, if the employer isn't talking to you, is possibly an intervention by a union; and if that doesn't help, whether they would support you to make a tribunal claim (although, as I said, it's a risky claim).