Insurance Question!
A friend of mine (living abroad) pays an annual renewal premium (96 pounds) on a fully comp insurance policy for a C reg Ford Escort. He claims that this enables him to drive any vehicle when back in the UK and be fully insured to drive it. Fair enough you say, but the thing is, his brother no longer owns the car, in fact, they don't even know if the car still exists. I thought that this wasn't possible; either (a) the car is scrapped or (b)it is owned (and insured) by someone else. In either case, is it possible that my friend has a valid, legal insurance policy?
When I said that I thought it wasn't possible, he tells me that him and around twenty of his pals all held insurance policies for a Fiat 127 (owned by one of them) at the same time, back in the eighties, so that they could build their no-claims discount before buying their own car. He tells me that any number of people can hold an insurance policy for a car irrespective of ownership or even existence of the car. Is this correct?
Thanks
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An interesting one this and from a Plod perspective he would want to know from the Insurance Co just what exactly the Policy contains and under the circumstances do the Company consider themselves to be 'at risk' in connection with any use.
I can see areas of offence investigation under section 147 R T Act 1988 of failing to surrender a Certificate within 7 days where it is cancelled by virtue of a provision (i.e. vehicle no longer in possession) and also Section 174(5) same Act of making a false statement or withholding material information for the purposes of the issue of a Certificate of Insurance. Principle evidence will come from the Insurance Company.
May well be more on the civil side.
DVD
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Blimey DVD, do you set the Osprey questions?
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Typical Insurance quesion "Is the car registered in your name?"
Answer - No
Q "OK Sir, to who is the vehicle registered?"
Answer - Don't know
Q "OK Sir, who actually owns the car?"
Answer - Nope sorry can't hwlp you there either
Q "When was the last time you actually drove this car"
- At this point the conversation would surely become a little tricky. Your mate wants the insurers to insure him for a car that may not even be on the road. It may not have an MOT, be taxed etc.
I don't think any insurance company would be daft enough to insure him for a car that no one can trace. If a claim were to arise, some awkward questions could be raised leading to an even more awkward investigation.
If he is then using his policy to drive other cars he may be buying when he comes back to the UK, then he really is taking chances!
In addition to that, If he's not resident in the UK and claims that he is to his insurers - Well I just hope I don't have an accident with this guy!
Enough said!
H
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Thanks for the response H! I think he is throwing away 96 pounds a year on this (futile if not illegal!) scheme.
What about the other assertion that him and around 20 of his pals held valid motor insurance policies for one car and used this as a vehicle (ahem) to build their no claims discount. Bear in mind that none of them were ever even in the car! I think if a policy exists for a car then insurers will insist that any other persons who want to be insured for it need to be added as named drivers(?). I'd be interseted to hear an insurer's view on these issues.
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