Duty of fair presentation replaces duty of disclosure

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From August 2016 the insurance industry will see major changes to the obligation on parties to provide their insurers with relevant information.

Since 2013 the rules for ‘’consumers’’ ( an individual who enters into a contract wholly for the purposes unrelated to the individual’s trade, business or profession) have moved away from the traditional ‘’Duty to disclose’’ to the ‘’Duty of fair presentation.’’ On the 12th August 2016 ‘’Non-Consumers’’ (business related insurance) will follow suit.

innsurance legislation changes

The new legislation is designed to be less onerous on the customer and to place more pressure on the insurer to take more of a lead in the information gathering process. It is hoped that the new guidelines will stop insurers taking a wholly passive approach and then looking to deny cover on the grounds of non-disclosure.

 

Overview of the new legislation:

  •  Move from duty to disclose to duty of fair presentation
  • Commercial Policyholders should disclose every material circumstance that they know or ought to know, if they don’t do this they should give their insurers information that is sufficient to put the insurer on notice that further enquiries may be necessary.
  • It is unreasonable for an insurer to assume that the individual purchasing the insurance has every single material fact to hand and compels an insurer to dig deeper should they need further information.
  • The presentation of the facts to the insurer should give a clear indication of the risk to the Underwriters-this is to prevent submissions that are too brief or to prevent data dumping (where Policyholders bombard the insurer with vast amounts of data that is not relevant).

 

If there is a breach of disclosure:

 

Non-deliberate breach or non-reckless breach:

  •  Claim refused on basis information was available – All premium must be refunded from inception and the policy will be voided.
  • Increase in premium – The insurer could reduce the claim payout by the amount that was under paid at inception for example. If only half the correct premium was paid at inception the insurer may only pay half the claim.
  • Terms changed – An insurer may choose to alter the cover or excesses of a policy and settle the claim under those new terms.

 

Deliberate breach

  • The Insurer can void the policy and keep all of the premium paid but the Insurer must prove that the policy was deliberately misrepresented.

Overall, the new legislation shares the responsibility of the disclosure between Insurer and Insured and falls in line with the Financial conduct authorities’ big push on treating customers fairly. August 2016 will mean that brokers will play are more important role than ever condensing the information from the insured, presenting it in a way that is easy for an Insurer to provide suitable cover with a premium that is reflective of the risk.

Daniel Fosker

Director Quotax

Quotax launch new short term Taxi scheme

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Since Boris introduced the 15 year rule we have been inundated with requests to cover clients for both social domestic and pleasure use and temporary Taxi policies.

Often the time when the vehicles plate is coming off, doesn’t tie in with their Insurance renewal.

Our clients often want to save money by taking out a temporary Insurance policy rather than a full year. Once the vehicles are no longer able to ply for hire our clients often then request Social domestic and Pleasure policies. For some time Quotax have been able to offer SD&P policies but we weren’t able to cover the Taxi on a short term basis for Hire and reward……Until now.

Quotax have secured an exclusive arrangement to cover Taxis for Hire and reward on temporary policies.

Please feel free to call our team to discuss your needs on 0208 691 9691 or view our short term taxi insurance page.

e hailing mobile app screenshot

Government report shows London’s private hire vehicle boom of 40% since 2013

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With e hailing apps becoming more and more popular the UK has seen a significant increase in private hire vehicles.

The department of transport has released figures showing a rise of 11.8% across the UK since 2013 with a massive rise of 40.66% in London.

In 2013 there were 49,854 private hire vehicles in London the latest figures released by TFL on 14th sept 2015 show 70,126.

The current number of Private hire licences for individuals stands at 87,734 up against 21,612 Green Badge (All London Public Hire Taxi Licences) and 3,437 Yellow badge (Suburban Licence Public Hire Licences).

Currently TFL are issuing around 700 extra private hire licences a week, Boris has been lobbying the government to limit the capitals Private hire licences but up until now nothing has been passed in law.

The licenced Black Taxi numbers have remained stagnant and has actually dropped by 58 since 2011. This year has also seen the lowest number of applications for individuals studying the Knowledge in many years.

The Taxi trade are currently awaiting the decision on whether the way UBER calculates it’s fares amounts to a meter, something that TFL say can only be used by a Licensed Black Taxi.

e hailing mobile app screenshot

 

Insurance premium Tax to increase by 3.5% from November 1st

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On the 8th July 2015 The Chancellor announced in his budget that the standard rate of insurance premium tax would increase from 6% to 9.5% effective from 1st November 2015

For Travel Insurance, mechanical appliances and certain vehicle insurance the rate would remain at 20%

This will affect the following clients (Please note this is not the complete list of business Quotax places that may be effected):

Taxi Insurance

Minibus Insurance

Short term (Temporary) Minibus Insurance

Coach and Bus Insurance

Commercial Insurance

Fleet Insurance

Private Car Insurance


Basic outline of changes:

 

New Business and Renewal transactions

  • Inception/renewal date before 1 November 2015: 6%
  • Inception/renewal date on or after 1 November 2015: 9.5%

 

Mid Term Adjustments (MTAs) on policies incepted or renewed before 1 November 2015

Refund Premiums (RPs):

  • Effective date of MTAs before 1 November 2015: 6%
  • Effective date of MTAs on or after 1 November 2015: 6%

Additional Premiums (APs):

  • Effective date of MTAs before 1 November 2015: 6%
  • Effective date of MTAs on or after 1 November 2015: 9.5%

 

#Savetaxi campaign brings Whitehall to a standstill

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Whitehall was the scene of the latest protest against TFLs Taxi regulation in the capital. On Saturday 5th September Taxi drivers and their families protested near Downing street, with the roads gridlocked and temporarily closed by police at 1pm.

The second protest of its kind was directed at TFLs continuing lack of enforcement on a number of issues such as:

  • Private Hire licencing numbers
  • E-Hail
  • The use of Private Hire drivers phone as a meter by the likes of Uber even though TFL state that only Black Taxis can use a meter
  • No enforcement of illegal touting

The list continues

The families have highlighted the effect that lack of enforcement of TFLs own rules is having not only on the iconic London Taxi trade but also on their families.

 

#SaveTaxi Protest outside TFL office a great success

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A Taxi drivers wife is leading the protest today against TFL. Artemis Mercer has founded the #SaveTaxi campaign and has a great team around her.

The #SaveTaxi campign is a campaign directly against Transport for London’s failure to enforce its regulations. The lack of enforcement is having a direct impact on thousands of hard working Taxi drivers who are seeing spiralling costs and less work due to TFL releasing thousands of Private Hire licences over the last few months.

London Taxi drivers spend usually around 4 years studying to be a London Black Cab driver through a test called the knowledge, this takes time and is a considerable cost.

The peaceful demo outside TFLs office has been hailed a great success and this group is quickly gaining more followers by the day.

Quotax – You are doing a fantastic job keep up the good work, the current situation can’t continue.

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Save our Taxi 5

 

Gett Taxi Partners with Knowledge students to deliver Verve Clicquot Champagne

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Gett, the exclusive black taxi app has launched a on demand delivery service that is hoped will eventually allow users to order a wide range of goods and services.

Gett users in Shoreditch, Knightsbridge, Chelsea, Clerkenwell, City of London, Belgravia and Kensington will be able to order a bottle of the yellow label champagne and two flutes within 10 minutes between 4pm and 10pm and the cost is £50.

The Champagne will be delivered by those currently studying the Knowledge (an extensive test  of 320 basic routes, all of the 25,000 streets that are scattered within the basic routes and approximately 20,000 landmarks) to become a Taxi Driver.

Gett Founder had previously indicated that the app would look to expand and could include: Gett Sushi, Ghett Grocery, Gett Wine, Gett Flowers as well as many more.

The Tel Aviv-founded company recently raised $220m in funding and changed its name to GetTaxi in preparation for its new products.

Uber has recently run several schemes for delivery including its latest partnership with Walls Ice cream. The London Taxi market has experienced fierce competition recently from the likes of Kabbee, Addison Lee, Green Tomato and Minicabit. GetTaxi have positioned themselves solely with Black Taxi drivers hoping to win the war with their

Insurance Premium Tax to rise from November

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The Chancellor George Osborne has just announced a rise in Insurance Premium Tax (IPT) from 6% to 9.5% from November.

This tax will apply to the following lines of insurance: Mobile Insurance, Minibus Insurance, Short Term Minibus Insurance, Taxi Insurance, Care Home Insurance, Fleet Insurance, Home Insurance.

The British Insurance Brokers Association estimate this increase will effect 19.6 million motor insurance policies, 20 million Home insurance polices

This increase will also effect any mid-term adjustments made on the policy as insurance premium tax is also charged then.

IPT was first introduced in Oct 1994 and since then has increased regularly. It was last increased in 2011 when it went from 5% to 6%.

 

 

Uber Protests turn violent in Paris as Taxi drivers take on car-booking firm

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Angry Parisian taxi drivers have blocked access to airports and railway stations, overturned cars and set fire to tyres in and around Paris in protest against unlicensed Uber cars.

Riot Police have been deployed across Paris to quell the violence and disperse the blockades.

Suspected Uber drivers were pelted with missiles and one Taxi driver was taken to hospital after being run over.

Courtney Love was also caught up in the protest claiming on twitter that her driver had been ambushed and held hostage.

paris uber riot

Taxi drivers in Paris pay up to 240,000 euros for a Paris for private Hire licences and drivers are alleging Uber are operating illegally and Police are not doing anything to stop them.

In France UberPOP operates which is not licenced by the authorities and act as a ride sharing App. The law states that all Taxis must be licenced and there have been about 500 legal cases as Prosecutors crack down on UberPOP. Over the past few weeks there have been around 100 reported attacks on Uber passengers and drivers.

Taxis that ignored the strike were also targeted in the attacks.

Night Tube start dates announced

Night Tube start dates announced

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TFL have released the lines that are set to be open 24 hours a day on Fridays, Saturdays and Sundays from 12th September this year.

Night Tube start dates announced

 

  • Victoria Line – Trains will run the entire length of the line
  • Central Line – Trains will run between Ealing Broadway and Hainault
  • Jubilee Line – Trains will run the entire length
  • Northern Line – Trains will run along all stations except Mill Hill East and Bank
  • Piccadilly Line – Trains will run between Cockfosters and Heathrow Terminal 5

The night tube is set to increase the capitals night time economy – supporting thousands of jobs and stimulating hundreds of millions of pounds in economic growth.

The London Taxi trade are set to suffer another setback with many late night revellers set to use tube instead of taxis.

Gareth Powell, London Undergrounds director for strategy and service development praised the increase in service as ‘’a historic step in our modernisation of the Underground.’’

Tube staff are set to strike on July 8th over pay and shift conditions.