Motor Trade Road Risks Underwriting Guide V1 06.11 KennCo Underwriting Ltd MOTOR TRADE ROAD RISKS UNDERWRITING GUIDE CONTENTS PAGE Summary of Cover 2 New Business i) Quotations 3 ii) Granting of Cover 6 iii) Minimum Premiums & Policy Period 6 iv) Excess 7 Adjustments 7 Cancellation 8 Renewal 9 1 Motor Trade Road Risks Underwriting Guide V1 06.11 A ) SUMMARY OF COVER Third Party Liability Fire & Theft Accidental Damage Windscreen Breakage (own vehicles only) Trailer/Towing Cover Foreign Use Compulsory Excess Young/Inexperience d Driver Excess Voluntary Excess For injury or death to other people and for damage to the property of other people Loss or damage to an insured vehicle caused by Fire or Theft To an insured vehicle Limit of €250 for any one incident. €500 aggregate limit in any one policy period but this increase only applies if replaced or repaired by our approved repairer Third Party only cover whilst attached and detached as required by the relevant Road Traffic Act(s) Minimum cover provided for certain European countries subject to terms and conditions Standard excess is €500 An additional €500 excess will apply to drivers aged under 25 and drivers who hold provisional licences Premium can be reduced if the policyholder is willing to pay an extra €120, €240 or €480 in addition to the above noted excesses Comprehensive Third Party, Fire & Theft Third Only * * * * * * * * * * * * * * * * * * * All levels of cover are subject to Exceptions and Conditions as set out in the Policy Booklet, Certificate of Motor Insurance and or the Schedule. We recommend that you familiarise yourself with these. 2 Party Motor Trade Road Risks Underwriting Guide V1 06.11 B ) NEW BUSINESS i) Quotations All risks must be input through the KennCo auto-quote system and all quotes are valid for 30 days only from the date of quotation. Where ‘Refer to KennCo’ appears on the quoting system, we may still provide terms, so please contact us in this instance. You can obtain a quotation by either faxing the full details to (01) 495 4627, e-mail us at [email protected] or calling us on (01) 499 8318. Once you have either a printed or scanned copy of the quotation, the premium for which is fully guaranteed, please submit for cover along with the proposal form or statement of facts document. a) Types of Occupations We are able to offer terms on the following types of Motor Trade occupations Sales Repairs or servicing Restorers Windscreen, tyre or exhaust fitters Accessory, audio or telephone fitters Assessors or engineers Repossessors or liquidators Auctioneers Motor journalists Cleaners or valets Valet parking services (hotels, etc.) Vehicle Recovery Unacceptable occupations include Vehicle breakers Second hand parts dealers Vehicle deliveries We can also offer terms to people who are involved in the Motor Trade on a parttime basis only, provided that the nature of their involvement is acceptable as per the above and that they are not involved in the Public Service Vehicle or Haulage trades. Other exclusions may apply and we cannot allow any use on the policy other than Motor Trade. Please refer for details. b) Drivers The following criteria must be observed for all drivers Aged between 21 and 69 years old, employed in the Motor Trade on a full or parttime basis and with no convictions We may offer terms if an additional driver is aged under 21 years, or over 69 years, subject to the underwriter’s discretion. Please refer with details. c) Accidents and Claims All accidents and claims within the last five years must be disclosed, whether they are the fault or not of the driver concerned. Please note that KennCo operates on 3 Motor Trade Road Risks Underwriting Guide V1 06.11 the basis of a no claim bonus not a no blame bonus. Therefore, we consider a fault claim to be any incident where the insurer has made payments that have not been fully recovered under any section of the policy including fire, theft and malicious damage. We will not offer terms on risks revealing more than two fault claims within the last three years. d) Convictions Please refer with full details. e) Physical/Medical Conditions Please refer with full details. f) Residency All drivers must be resident in Ireland and have been so for at least 12 months. g) Licence All driving licences issued by a European Union member state are treated as the Irish equivalent. The following full driving licences issued by non-EU countries are also acceptable as full Irish licences Republic of South Africa New Zealand Australia - all states Japan All other country’s licences are rated as provisional Irish licences. h) Vehicles The standard policy covers private and commercial vehicles, providing Commercial vehicles do not exceed 10 ton GVW Policyholder's own standard vehicles do not exceed €85,000 in value Customers’ standard vehicles do not exceed €100,000 in value Vehicle transporters capable of carrying no more than one vehicle and towing no more than one vehicle. Subject to the necessary additional premium being paid, the policy can be extended to include: Policyholder’s own vehicles up to a value of €100,000 The cover provided by this Policy may be extended to include a motorcycle for Social, Domestic & Pleasure Use plus Business Use (but purely in connection with the business use described in the Proposal Form/Statement of Facts), solely by the Proposer/Proprietor of the business, provided that the motorcycle is owned by and registered to the Proposer/Proprietor of the business (as described in the Proposal Form/Statement of Facts). The Proposer/Proprietor must be at least 25 years of age or over for cover to operate and must hold a current, valid, endorsement free, full Irish motorcycle drivers licence. For cover to operate, the motorcycle cannot be over 150 BHP (Brake Horse Power). If operative, this cover is limited to Third Party Only (Section 1 of the Policy). Cover will only extend to one 4 Motor Trade Road Risks Underwriting Guide V1 06.11 bike and one user at any time and the additional premium required for this extension must be paid. This charge applies regardless of effective date. Customer vehicles with a gross vehicle weight in excess of 10 ton The following vehicles are excluded from cover if they are: Owned by individual directors, partners, employees or named drivers Self Drive Hire vehicles or leased or hired to customers (including sponsored vehicles) or any named driver Used for carriage of people or goods for hire or reward Vehicle transporters capable of carrying more than one vehicle i) Rating Area The rating area is generally based on either the location of the proposer’s business or home address whichever is the higher. If the proposer has a number of addresses, we will use the highest rated address for all quotations and so please do so when running a quote through our own system. j) No Claim Discount For a risk to be eligible for quotation, a no claims discount entitlement of at least one year is required. This can be from either a previous Motor Trade, Private or Commercial Motor policy and is transferable on a like-for-like basis. Please note that no claims discounts from any other policy are unacceptable. No Claim Discount earned on a policy that expired more than two years prior to quotation is unacceptable. We will accept Named Driving Experience but only if the proposer can prove at least 3 years named experience, free of claims within the prior 24 months of cover. If one fault claim arises during any period of cover, the No Claim Discount will be reduced as outlined below with effect from the next renewal NCD @ Last Renewal 5 years or more reverts 4 years reverts 3 years reverts 2 years or less reverts NCD @ Next Renewal 3 years 2 years 1 year nil to to to to Two or more fault claims will delete all no claim discount entitlement. The above step-back will also apply when transferring a no claims discount from a previous insurer where a fault claim has occurred within the last two years. Remember, a fault claim is considered to be an incident where the insurer has made payments that have not been recovered. ii) Granting of Cover To effect cover, you must fax us (01-495 4627) or e-mail us [email protected], the following copy documents: 5 Motor Trade Road Risks Underwriting Guide V1 06.11 Proposal Form/Statement of Facts - fully completed and/or signed by the proposer Copy of in-date KennCo auto-quote with premium noted and accurately reflecting the risk Copy of all current driving licences for all drivers, front and back. Note that the counterpart licence is required for UK licences. Letter of No Claims Bonus Any other documentation KennCo may request. Cover is automatic on the basis the above has been adhered to and will remain in force unless advised in writing to you by KennCo or unless you fail to collect the above original documents within 14 calendar days thereafter. These documents should be retained in your offices for possible inspection by KennCo, however we only require the copy documentation in order to issue annual papers. We reserve the right to refuse, alter, amend and/or cancel cover on any risk submitted to us or for which we have confirmed cover. 6 Motor Trade Road Risks Underwriting Guide V1 06.11 iii) Minimum Premiums & Policy Period Comprehensive Cover Third Party, Fire & Theft Cover Third Party Only Cover €845 €775 €775 All of the above noted premiums are inclusive of government levies. Motor Trade Road Risks are only available on an annual basis. We cannot offer short period terms. iv) Excess The standard policy excess is €500 on Accidental Damage, Fire and Theft claims only. A further additional excess of €500 will apply to drivers under 25 years of age and/or who hold provisional driving licences. The policy excess may also be increased for underwriting reasons. Where the total policy excess is increased at the policyholder’s request, a voluntary excess discount is allowed as shown, once the premium has not already reached it’s Minimum Premium. Amount of voluntary excess Discount allowable (Comprehensive or Third Party Fire & Theft only) €120 €240 €480 C ) ADJUSTMENTS Adjustments may be faxed, posted, or e-mailed into us. Please ensure the adjustment is acceptable to us prior to cover being confirmed to the policyholder. You are then asked to send the supporting documentation to us by post. a) Additional/Return premiums We will calculate any additional or return premiums for you, so please contact us if you require any quotations or amendments. b) Documents required Depending on the type of alteration, various documents will be required as follows: Alteration Type Change of driver - (permanent & temporary) Deletion of driver Documentation Required Additional Drivers Form* and copy of Driver’s Licence, front and back E-mail confirmation only Change of Address E-mail confirmation only Duplicate Certificate/Disc In certain require a 7 cases we will lost certificate Motor Trade Road Risks Underwriting Guide V1 06.11 declaration form * additional drivers forms must be signed by both the policyholder and additional driver Other adjustments may need different documentation - please refer. If a policy is incepted or renewed on the basis that a driver has a provisional driving licence and that driver then obtains a full driving licence during the policy period, no return of premium is allowed. The subsequent renewal will be based on the full driving licence rates, providing that we receive a copy of the full driving licence (and not the Certificate of Competency) prior to the renewal date. D ) CANCELLATION The policy may be cancelled at the policyholder’s request by giving us seven days notice in writing and subject to the following: Cancellation will take effect from the date we receive the certificate and disc If either the certificate or disc has been lost or mislaid, a statutory declaration will be required. a) Pro rata return of premium A pro rata return of premium can be allowed where the following conditions are met: The policy has been active for at least 12 months There are no claims (reported or pending) within the current policy period b) “Short period” return of premium A “short period” return of premium will apply where the following conditions are met The policy has been active for less than 8 months There are no claims (reported or pending) within the current policy period The “short period” rates are as follows Period of Cover Up to 1 month Up to 2 months Up to 3 months Up to 4 months Up to 5 months Up to 6 months Up to 7 months Up to 8 months Over 8 months % of premium refundable 12 month policy 75% 60% 50% 35% 20% 15% 10% 5% NONE c) No return of premium There will be no return of premium where 8 Motor Trade Road Risks Underwriting Guide V1 06.11 The policy has been active for more than 8 months but less than 12 months There are claims (reported or pending) within the current policy period d) Suspension We do not suspend cover. E ) RENEWALS Renewal of a policy will be invited the month before the policy is due. The terms indicated are based on the information we have regarding the risk at the time the terms are calculated. It is very important that the policyholder is aware of their duty to advise us of any material change to the risk. Any such changes must be advised prior to the renewal terms being issued. If the policyholder is in doubt as to whether a change is material, they must advise us anyway. Failure to do so could result in the policy being cancelled. We reserve the right to alter, withdraw or refuse renewal terms in the event of any details becoming known to us prior to the renewal date, which may affect the underwriting of the risk. 9