Rank: Guest 
|
Posted By john ridley
Hi
Just a quick one guys. We currently allow some of our employees to have an allowance to buy their own car. This is then sometimes used for certain business activities although to be frank this is usually at low frequency rates. The question is this; who is then responsible for ensuring the vehicle insurance covers what is usually referred to as "for business reasons"?
Thanks for your input
|
|
|
|
|
|
Rank: Guest
|
Posted By Jack
The driver is responsible for the insurance (and would be prosecuted for not having the appropriate insurance).
However, the employer is responsible for ensuring that the employee has the correct insurance (& licence & vehicle roadworthy) if it is used on employers business. In my view this means checking the insurance.
|
|
|
|
|
|
Rank: Guest
|
Posted By David Scott
I agree with Jack! He did mention also that the vehicle is roadworthy! You must therefore check that the car is serviced regularly as when used for work purposes it is work equipment and therefore subject to PUWER Reg 5.
|
|
|
|
|
|
Rank: Guest
|
Posted By Phil Roberts
John,
For tax and suitability for home purposes I use my own car for business use and insure it my self. I have to supply photocopies of my insurance certificate, which covers me for business use, MOT cetificate and service book to my mnanager on an annual basis. I am paid a milage allowance that covers all of the expence of running the car but not for buying it.
Regards Phil Roberts
|
|
|
|
|
|
Rank: Guest
|
Posted By Mike
When cars are used for personal transport (surely 99.9% of the time) PUWER does not apply. It must be the experience of most people in this position of requiring Class 1 business insurance that they use their cars for travelling from one site to another or around sites, within their working hours. They do not generally use their private vehicles as dumper trucks or lifting equipment (mobile equipment under PUWER).
Employers checking insurance certificates, service records etc. of privately owned vehicles is sensible practice, particularly for new employees, but since all liability rests with the employee it is just the employer's choice to do this. Nothing compels them to do it. My major public sector employer requires me to sign a declaration that I have business insurance as a condition of receiving a mileage allowance. That is as far as it goes.
|
|
|
|
|
|
Rank: Guest
|
Posted By David J Bristow
Hi John
It may worth noting that there are two types of business class -
No1 - is for normal/domestic pleasure including personal business work e.g. people getting to and from work and using the car in connection with their business -
No2 - is were the person/emploeyee may carry other empolyees and or samples in connection with their business!- there is a difference!
Our company have a policy that they pay the difference in premiums between the normal levy and the extra!
As for who is resonsible - it would lay on the employee to ensure that proper insurance is undertaken and also on the employer to ensure that adequate cover is in place 50-50!
Hope this helps.
Regards
David B
|
|
|
|
|
|
Rank: Guest
|
Posted By Brian Dawson
Mike says that 'but since all liability rests with the employee it is just the employer's choice to do this'. That may possibly be argued as far as insurance goes although my organisation checks this (on my advice) because if a driver was not insured an injured person would probably make a claim against the employer and it may well succeed. However, the employer is clearly required to ensure driver is competent if driving in course of employment and the vehicle is roadworthy. (Why should driving a car be different from using a chain saw?)
I seem to recall a case under S 2(2)(a) where a major national employer was prosecuted for not having a proper system that ensured private vehicle used by employees are roadworthy, the driver competent and qualified to drive, and the vehicle insured (this is from memory so no doubt someone will confirm or otherwise).
|
|
|
|
|
|
Rank: Guest
|
Posted By Mike
Brian
This shows how important it is to get a definitive answer from your insurers rather than the forum! In my case my insurer has already agreed that it will not try to recover costs from my employer in the event of an accident (my employer obtained the declaration). If I fall uninsured through my negligence, say unroadworthy vehicle, the law must take its course with me and I suppose the Motor Insurance Bureau procedure applies to compensate any third parties. Incidentally a previous correspondent excluded cover for employee passengers from Class 1 business cover. I have class 1 insurance and such passengers are definitely covered at least in my car. If they are injured during working hours in my car they must claim against my policy, not my employer's. Again a specific declaration has been obtained to this effect from all insurers with very few exceptions. This may partly explain the more relaxed attitude of my employer, compared to some correspondents!
|
|
|
|
|
|
Rank: Guest
|
Posted By Richard
Does not vicarious liability come into this in some way, or have I got hold of the wrong end of the stick?
Richard
|
|
|
|
|
|
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.