Motor Trade Underwriting Guide

Motor Trade Road Risks Underwriting Guide V1 06.11
KennCo Underwriting Ltd
Summary of Cover
New Business
Granting of Cover
iii) Minimum Premiums & Policy Period 6
iv) Excess
Motor Trade Road Risks Underwriting Guide V1 06.11
Third Party Liability
Fire & Theft
Accidental Damage
(own vehicles only)
Foreign Use
Compulsory Excess
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
To an insured vehicle
Limit of €250 for any one
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
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
Third Party,
Fire & Theft
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.
Motor Trade Road Risks Underwriting Guide V1 06.11
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
Repairs or servicing
Windscreen, tyre or exhaust fitters
Accessory, audio or telephone fitters
Assessors or engineers
Repossessors or liquidators
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
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
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
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
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
4 years
3 years
2 years or less
NCD @ Next Renewal
3 years
2 years
1 year
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:
Motor Trade Road Risks Underwriting Guide V1 06.11
Proposal Form/Statement of Facts - fully completed and/or signed by the
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.
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
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)
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
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
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.
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
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
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
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
c) No return of premium
There will be no return of premium where
Motor Trade Road Risks Underwriting Guide V1 06.11
The policy has been active for more than 8 months but less than 12
There are claims (reported or pending) within the current policy period
d) Suspension
We do not suspend cover.
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.