Not everything can be covered by a Motor Trade Insurance. Before signing into an agreement, a trader must be first mindful of the grey areas of an insurance plan- particularly its limitations and restrictions.
Limitations on Individuals
To avail a motor trade insurance, a trader must be at least 18 years old as this is the minimum age he/she can apply for a driver’s license. Consequently, he/she must have obtained a driving license for one year in the United Kingdom or in any European country. Other policies may have different age limits; others require individuals to be at least 21 years old and others require 25. These limitations are due to the types of cars that are age specific- particularly related to engine capacity and engine power. Petrol turbo cars should not be driven by those under 21 whereas high-performance cars are prohibited to those below 25.
Limitations on the Vehicles
As for the vehicles, the vehicles under the trader’s custody must be used for business purposes only. If the vehicle was used for recreation and other non-business ventures, the road risk insurance may not be applicable at all. The insurance plan may also include geographical limitations and specific business vicinities and going beyond these restrictions may forfeit the cover.Another is a common misconception among traders. The only vehicles that are insured must only be those under the trader’s custody or those declared under the motor trade insurance. Other vehicles not owned by the trader are not covered. Even if the employees or drivers are covered, this wouldn’t mean that whatever vehicle they opt to drive is already insured. This also includes vehicles owned by the spouse- unless an internal arrangement with the insurance company was made and supported by adequate documents. In some cases, certain companies even exclude vehicles owned by the trader that are leased to another person.
The size of the vehicles also matter as some companies limit the cover to cars within a specific weight range. Moreover, other specs include car types, engine capacity, carrying capacity (in case of trailer trucks), years of registration, plate numbers. If the vehicles are recklessly or irresponsibly used, damages are not included in the plan. Examples of these situations are vehicles driven by individuals not declared in the insurance plan, driving under the influence of drink or drugs, driving in unsafe roads such as those under construction, driving without a valid Ministry of Transport Certificate, and leaving the keys inside the car and neglect of car’s safety (leaving the windows and doors open).
In any case, the trader must have understood the terms and conditions of the insurance plan and must secure his/her own personal copy to prevent any misuse of the vehicle and engagements against the policies of the insurance company. This will also help the trader to fully benefit from whatever type of plan he/she availed of.
© General Community 2018