Willis develops grey fleet insurance solution for FSG customers
The insurance solution has been developed to work alongside FSG's RiskMaster online at-work driving safety initiative, which manages vehicles, drivers and journeys to enable employers to reduce their risk exposure.
The new product from Willis is designed to ensure that drivers have the correct insurance in place to enable them to drive their own cars on business trips.
Underwritten by international insurer Catlin Group, the cover uses HMRC's tax-free Approved Mileage Allowance Payments (AMAP) as its premium basis. On 6 April, the AMAP rate for the first 10,000 business miles increased from 40p to 45p per mile. The grey fleet insurance premium is effectively funded from within the additional 5p per mile paid by employers to own car users.
For comprehensive cover the premium rate quoted for one potential customer is 4.1p per mile and for third party fire and theft it is 3.3p per mile.
Hall explained: 'While the insurer requires a deposit premium, which depends on the number of grey fleet drivers involved in the scheme, the premium is collected on a pay-as-you-go basis from employees' mileage expense claims. What it means in financial terms is that if insured on a comprehensive policy, employees will receive 40.9p per mile with the remaining 4.1p per mile deducted by the employer to pay for the cost of insurance.'
Additionally, as part of the administration process, Catlin requires a monthly mileage declaration.
Steve Hall, development director in the Bristol office of Willis, said: 'We believe the scheme is unique and overcomes all the administration issues associated with employers checking whether or not staff have the correct insurance in place on their own cars to drive them on business journeys.'For more of the latest industry news, click here.