Launch of insurance group rating system for light commercial vehicles
The Association of British Insurers today (3 February) announced the launch of a new group rating system for light commercial vehicles (LCVs). The rating system will take into account repair costs and security.
It has been developed in conjunction with ABI member companies and Lloyd’s syndicates following increases in claims costs and the level of thefts of LCVs. Insurers will be able to use the system to more accurately assess premiums to reflect individual risks. In the past, insurers have used the gross vehicle weight to assess vehicles, which led to vehicles with very different characteristics being rated similarly.
The ratings system will consist of 20 insurance groups and will take into account the following factors:
- The Vehicle’s Retail Value:
On the road price, excluding delivery charges and road tax.
- Gross Vehicle Weight:
as published by the manufacturer
- Damagebility and Repairability:
cost of parts and repair times will be measured using the internationally recognised 15 kph front offset impact. In addition, the costs of front windscreen, front door and road wheels will be used to take account of other frequently replaced parts.
- Security - New Vehicle Security Assessment (NVSA):
the NVSA will be carried out by the Motor Insurance Repair Research Centre (Thatcham) to the insurance industry criteria. Good security will be rewarded with an adjustment of the group rating downwards.
The first list of ratings will be published in the third quarter of this year. It is expected that insurers will have systems in place to use the new ratings by the middle of 2001.
Penny Coombs, ABI’s Motor Manager, said:
“With the increased emphasis on security, the new rating system reflects the insurance industry’s commitment to reducing the high level of theft of commercial vehicles. It is the latest development in the industry’s drive to reduce vehicle crime, building on the similar group rating formula established in 1992 for private cars.”
“The industry will continue with its close working relationships with manufacturers and importers of light commercial vehicles, in the same way that we have with those involved in the private car sector.”
Notes
- Enquiries to:
Malcolm Tarling 020 7216 7410 (Home: 020 8297 9510)
Suzanne Moore 020 7216 7411 (Mobile: 07712 841183)
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