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Month: June 2020

What is Motor Trade Insurance and Who Needs It?
What is Motor Trade Insurance and Who Needs It?

Posted on June 19, 2020 | by | Posted in Uncategorized

If you own a business that involves interacting with client vehicles, then you’ll need a special type of insurance to protect you against unforeseen accidents. This insurance is known as motor trade insurance and is commonly used in business such as breakdown recovery firms, second-hand car dealerships, and even valet parking services. Like with most types of covers, it’s worth doing a bit of research before buying a policy so you can acquire the right deal that best fits your needs. This article will discuss what motor trade insurance is all about and which businesses should have this type of insurance.

What is motor trade insurance?

Motor trade insurance is designed to provide cover for businesses who operate in the motor trade industry. This includes mobile mechanics, valets, body shops, vehicle recovery agents, and more. Such businesses face inherent risks with their day-to-day operations which means they need special insurance policies to shield them from financial loss.

So how does motor trade insurance differ from private car insurance? The latter is meant to cover you when driving your own car (or someone else’s) for business/private use while the former applies to those who work with multiple vehicles (including customer cars). Because you and your staff are working on several different vehicles, it would be tremendous work just to update the insurer for each car being covered by private car insurance only.

Who needs motor trade insurance?

Whether you’re buying, selling, fixing, or just interacting with your client’s cars in general, you most likely need motor trade insurance. This type of insurance is a must for businesses such as:

  • Full-time and part-time motor traders
  • Mechanics
  • Car sales
  • Body shops
  • Tyre and exhaust fittings
  • Car valet services
  • Vehicle recovery agents

Keep in mind that motor trade insurance doesn’t just apply to companies only. If for example, you’re a self-employed individual who has responsibilities for other people’s vehicles, then it’s important that you have the right policy in place to protect yourself against financial losses. It may be possible that the customer’s policies may cover that of other drivers albeit on a third-party basis instead of a comprehensive one. It’s a common feature seen on motor trade insurance in the past, but it’s less likely the case nowadays.

If you’re unsure whether or not your business needs motor trade insurance, then we recommend discussing everything with your insurer to obtain the correct advice.

What does motor trade insurance cover?

Motor trade insurance policies are usually tailored according to the specific needs of businesses. This makes it crucial to think about the risks and activities you want to be insured from so you don’t end up paying for cover you don’t really need. Some of the most common covers by motor trade insurance are:

  • Road risk insurance – If you drive vehicles out on the public road, then you most definitely need road risk cover. Think of examples like taking cars out to check faults or delivering vehicles to buyers. If your business doesn’t involve driving vehicles as part of its operations, then you can opt for parts-only cover. Like with most motor insurance, you can choose comprehensive, third-party, or third-party, fire and theft cover.
  • Employer’s liability insurance – This cover protects you from claims made by your staff. Regardless of whether or not your employees are driving vehicles, it’s important that you have this cover in place since it’s a legal requirement in many countries.
  • Public liability insurance – This cover protects you and your staff from claims made by customers or the general public.
  • Product liability insurance – This cover protects your business when fitting new parts to a customer’s vehicle and the part is defective in nature.
  • Material damage covers – This covers any vehicles and equipment your company owns (e.g. unsold vehicles) and insures them. This type of insurance may see increases in value during peak registration periods.
  • Combined motor trade insurance – A more comprehensive type of policy that covers you from road risks as well as your equipment and premises. Oftentimes picking up this cover is much cheaper than getting several separate policies, but it’s best to check first if it includes relevant parts of your business to a certain extent.
  • Extra drivers – It’s vital for your business that your trade policy covers all of your staff. Opting for an “any driver” policy will only cost you more than limiting cover to a select few employees or naming any insured drivers on the policy.
  • Vehicle types – If your business needs insurance cover for your staff when driving vehicles such as vans, cars, and other large vehicles, it’s likely to be very expensive. Check if your policy covers you and your staff only for the vehicles you drive so you don’t end up paying extra.

If you are a motor trader and you’re looking for the right insurance for your business, it’s important that you speak with the experts for professional advice. Feel free to contact Matrix Insurance today and we’ll attend to your needs at your earliest convenience.

Everything you Need to Know About the Insurance Council of Australia
Everything you Need to Know About the Insurance Council of Australia

Posted on June 19, 2020 | by | Posted in Uncategorized

The Insurance Council of Australia (ICA) is the country’s representative body for the general insurance industry. Members of this organisation claim to represent around 95% of written premiums across general insurers in the private sector. According to the Australian Prudential Regulation Statistics, the general insurance industry generated an annual GWP of $49.5 billion and an asset total of $128.3 billion back in September of 2019. Australia employs approximately 60,000 staff members and hands over $155.1 million worth of claims each day (on average).

Members of the ICA offer a multitude of insurance products ranging from individually purchased items like travel insurance and home insurance to those purchased by businesses like professional indemnity insurance and public liability insurance. The Insurance Council of Australia was established back on July 1, 1975, with the goal of influencing the general public regarding insurance protection and security in an ethical and professional manner.

The organisation includes insurance and reinsurance companies, agencies and intermediaries from public and private sectors, and Lloyd’s underwriters. A Chief Executive Officer oversees the entire organisation and is responsible for the Board of Directors chosen by member companies. An executive team provides support to the ICA by managing a series of divisions and maintaining committee structure 

Aside from representing its members, the Insurance Council of Australia also develops industry positions and handles issues through industry forums, consumer management services, public affairs, and government lobby, all of which are heavily backed by extensive research and technical resources. Some key information about the ICA are:

  • Type of company: Representative body
  • Area of expertise: General insurance
  • Headquartered in: Sydney, New South Wales
  • Staff Members: 11-50

Key people in the ICA (2020)

Rob Whelan, CEO and Executive Director

After a successful career as a senior manager in both the insurance and banking sectors, Rob Whelan joined the Insurance Council of Australia on March 22, 2010. His experience and expertise consist of managing corporate affairs in major insurers such as Suncorp and AAMI. Whelan also has a deep background in general business management with companies like Colonial Mutual, Legal & General, and AMP.

With his proven track record and relevant experience in stakeholder management, Whelan is a big part of ICA and is a driving force in delivering positive results for the organisation as a whole.

Andrew Hall, incoming Executive Director and CEO

Andrew Hall is the incoming Executive Director and CEO of the Insurance Council of Australia after serving as Executive General Manager for Corporate Affairs in Commonwealth Bank of Australia. Hall brings tremendous amounts of expertise in the corporate affairs profession as well as governance in both corporate and non-profit industries.

Hall’s professional career dates back to his journalist days in New South Wales back in 1994. He then moved to Canberra two years later and worked in federal politics for a decade as a ministerial media advisor. 

John Anning, Head of Regulation Policy

John Anning is the head of the Regulation Policy Directorate and was appointed in April of 2007. Anning brings a wealth of experience in the field of regulatory compliance, public policy, and corporate/government relations. Anning previously worked as a General Manager for the Financial Planning Association where his roles encompassed technical and strategic advice on public policy matters and regulations.

Anning also held senior management roles in both government and corporate affairs like the Commonwealth Bank of Australia and Telstra.

Fiona Cameron, Head of Consumer Operations

Appointed as Head of Consumer Operations in July of 2017, Cameron has previously served as Senior Manager Government and Industry Relations for ICA and has worked for the organisation since January of 2010. Her role is to develop and implement the organisation’s policies in relation to the General Insurance Code of Practice, the Consumer Liaison Forum, and state/federal statutory schemes.

Cameron also held senior roles in consumer relations, policies, research, regulation, and law across a wide spectrum of industries. Prior to those roles, she’s also worked for the NSW Attorney General’s Department, NSW Department of Premier and Cabinet, and the previous Liquor Hospitality and Miscellaneous Workers Union.

Objectives of the organisation

The Insurance Council of Australia has stated that its main objectives are to:

  • Represent the interest of the members regarding domestic and international issues
  • Represent the general insurance industry to both the government and the community
  • Anticipate and assist the industry to meet the needs of its consumers and the community
  • Enhance the industry’s image
  • Promote community awareness regarding the roles and benefits of insurance
  • Encourage improved service standards across the insurance industry along with better self-regulation
  • Promote the provision of private-sector insurance services
  • Manage the resources of the organisation effectively and efficiently

Aside from representing the general insurance industry, the ICA works in tandem with all government levels to educate the public about natural disasters such as bushfires, floods, and cyclones. They participate in several different programs to help mitigate the effects of extreme weather. Such programs include the ICA Data Globe, Property Resilience Exposure Program (PREP), North Queensland engineering inspections, and the National Flood Information Database. Upon visiting the ICA’s website, the general public can access tons of helpful information about insurance, how to make claims, finding the right insurer, and more.

It is imperative to work with an insurance broker in Perth that works in line with ICA and its guidelines to ensure you are getting the correct advice.

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