Insurance - be on your guard
Discussion
Many of you long in the tooth like me will be aware of the old practice of Insurance Companies including a 14 day Cover Note on the Certificate to cover the period from expiry of the old certicate for 14 days to allow re newal.
Just picked up a noter in my Old Plod Association Journal from a respected Broker:
...' insurers have in the main withdrawn the old practice of allowing 14 days grace after a renewal is due. Previously a policyholder who had not confirmed renewal on the date due was provided with minimum RTA cover for 14 days before the policy was lapsed. Now cover CEASES at midday on the day renewal is due'......
Point to watch in the future remembering that Plod can have your vehicle away if not insured.
dvd
Just picked up a noter in my Old Plod Association Journal from a respected Broker:
...' insurers have in the main withdrawn the old practice of allowing 14 days grace after a renewal is due. Previously a policyholder who had not confirmed renewal on the date due was provided with minimum RTA cover for 14 days before the policy was lapsed. Now cover CEASES at midday on the day renewal is due'......
Point to watch in the future remembering that Plod can have your vehicle away if not insured.
dvd
I seem it is a legal requirement that the insurance are responsible under RTA to insure the vehical for the 14 days. Even if they cancel the insurance, you are covered for 14 days after they tell you to return the certificate of insurance.
Just to note though, under RTA, they are liable only for liability to any Third Party.
This reminds me of when I dealt with a claim a few years ago. Lady did a change of vehical, but had not sold the old car, which was parked on the street. Some scrote in a stolen vehical, smashed into this (now) non insured car, and then run off. The stolen cars insurance would not pay out as the scrotes were never found, so she went through a solicitor to claim on her on policy, through this 14 day rule. Without looking at the RTA, (so my wording wont be correct) but I remember it says that we have to honour the insurance of the RTA in respect to the Insurance that is stipulated that you have to have under the RTA. But, here is the key, they RTA only states Third Party Liability, so yes, we had to honour the insurance on the car, but only the third party element.
Dont know if that helps.
Just to note though, under RTA, they are liable only for liability to any Third Party.
This reminds me of when I dealt with a claim a few years ago. Lady did a change of vehical, but had not sold the old car, which was parked on the street. Some scrote in a stolen vehical, smashed into this (now) non insured car, and then run off. The stolen cars insurance would not pay out as the scrotes were never found, so she went through a solicitor to claim on her on policy, through this 14 day rule. Without looking at the RTA, (so my wording wont be correct) but I remember it says that we have to honour the insurance of the RTA in respect to the Insurance that is stipulated that you have to have under the RTA. But, here is the key, they RTA only states Third Party Liability, so yes, we had to honour the insurance on the car, but only the third party element.
Dont know if that helps.
RTA1988 Part VI said:
152.—(1) No sum is payable by an insurer under section 151 of this Act—
(a) in respect of any judgment unless, before or within seven days after the commencement of the proceedings in which the judgment was given, the insurer had notice of the bringing of the proceedings, or
(b) in respect of any judgment so long as execution on the judgment is stayed pending an appeal, or
(c) in connection with any liability if, before the happening of the event which was the cause of the death or bodily injury or damage to property giving rise to the liability, the policy or security was cancelled by mutual consent or by virtue of any provision contained in it, and also—
(i) before the happening of that event the certificate was surrendered to the insurer, or the person to whom the certificate was delivered made a statutory declaration stating that the certificate had been lost or destroyed, or
(ii) after the happening of that event, but before the expiration of a period of fourteen days from the taking effect of the cancellation of the policy or security, the certificate was surrendered to the insurer, or the person to whom it was delivered made a statutory declaration stating that the certificate had been lost or destroyed, or
(iii) either before or after the happening of that event, but within that period of fourteen days, the insurer has commenced proceedings under this Act in respect of the failure to surrender the certificate.
This is the section that I am refering to. Section 151 refers to what third party liability the insurer is responsibe for. I read the above to me in plain English, that the insurer is responsibly for 14 days third party cover, unless you have surendered the certificate, made a declaration that you lost or destroyed it, or the insurer commences proceeding for failure of you to surrender it.
Trax.
I am going to disagree with you.
The Certificate of Insurance or the Renewal Notice may contain words to the effect TEMPORARY COVER NOTE FOR NEXT RENEWAL. This is in effect a Cover Note Certificate of Insurance and whilst the termination date will be shown on the main certificate, the temporary cover for 15 days (my cert) at minimum cover while policy is renewed and only valid if offered a renewal and no approach made to another company.
What I understand the Insurance Company are now doing is removing this Cover Note aspect so that when absent the cover only extends to the days shown on the Certificate.
So if stopped and asked to produce Insurance then production of the extra cover Cover Note should be accompanied by the renewal certificate otherwise offence of No Insurance.
ADDED AFTER FURTHER RESEARCH
Where cover has run out and insurers give an extended cover note, the defendasnt must accept that cover note before he is validly insured under it and, if shown not to have relied on it, e.g. by later insuring with another company and never paying the first company, thecover note will not insure him.
Taylor v Allern [1965]
dvd
>> Edited by Dwight VanDriver on Sunday 29th January 11:14
I am going to disagree with you.
The Certificate of Insurance or the Renewal Notice may contain words to the effect TEMPORARY COVER NOTE FOR NEXT RENEWAL. This is in effect a Cover Note Certificate of Insurance and whilst the termination date will be shown on the main certificate, the temporary cover for 15 days (my cert) at minimum cover while policy is renewed and only valid if offered a renewal and no approach made to another company.
What I understand the Insurance Company are now doing is removing this Cover Note aspect so that when absent the cover only extends to the days shown on the Certificate.
So if stopped and asked to produce Insurance then production of the extra cover Cover Note should be accompanied by the renewal certificate otherwise offence of No Insurance.
ADDED AFTER FURTHER RESEARCH
Where cover has run out and insurers give an extended cover note, the defendasnt must accept that cover note before he is validly insured under it and, if shown not to have relied on it, e.g. by later insuring with another company and never paying the first company, thecover note will not insure him.
Taylor v Allern [1965]
dvd
>> Edited by Dwight VanDriver on Sunday 29th January 11:14
Wow, I think you got a bit too complicated for me DvD. lol
What the RTA refers to, only relates to the certificate of motor insurance, (not talking about cover notes etc). It looks from that part of the RTA, that if you cancel your policy, (and I also think when it finishes), you still have the cover stipuated under the RTA (third party), unless you have sent the certificate back, or they have asked for it.
What you are talking about is something different? Unless I am being a bit thick headed tonight.
What the RTA refers to, only relates to the certificate of motor insurance, (not talking about cover notes etc). It looks from that part of the RTA, that if you cancel your policy, (and I also think when it finishes), you still have the cover stipuated under the RTA (third party), unless you have sent the certificate back, or they have asked for it.
What you are talking about is something different? Unless I am being a bit thick headed tonight.
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