Insurance F.A.Q’s

Below we have listed the most frequent questions we are asked.

We have organised them in sections of insurance to help you filter them and find the ones which will help you the most.

Of course, the team at Pearson Insurance are always happy to answer any of your questions where you have a current policy with us or not!   We’re available to take you call Monday to Friday 9am to 5pm.  If you have an urgent question outside of these hours please drop us an email via our Contact Us page and we’ll be back in touch with you as soon as possible.

Motor Vehicle Insurance FAQ’s

What is a Modified Vehicle?

A modified vehicle is a vehicle that differs from its original factory standard specification and has been fitted with additional parts or had optional items added.

All vehicle modifications are material information and MUST be disclosed to your Insurer. Failure to do so may invalidate your Motor Insurance policy.

What are Kit Cars?

A Kit Car is a motor vehicle that is assembled from a set of parts that a manufacturer sells and the buyer then either assembles into a car themselves, or employs someone to do part or all of the work. Many of the major mechanical systems such as the engine and transmission are sourced from donor vehicles or purchased from other suppliers.

Kits vary in completeness ranging from as little as a book of plans to a complete set with all components included.

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For any motor policy, cars, vans or motorcycles, you do not get any days of grace to pay your premium. You must pay your renewal premium on or before the renewal date otherwise all cover provided by your policy will cease, you will then be driving your vehicle uninsured and you could be prosecuted by the Police.

It is vital that you take notice of your renewal invitation and contact us prior to the renewal date to pay your premium or to make any changes in cover so that we can obtain a revised renewal premium for you, otherwise you will become uninsured.

If you are paying by instalments via Direct Debit, then your policy may be renewed automatically, it is important that you contact us at least 10 days before the renewal date of your policy if there is any alteration, as this may change your monthly payments. If you wish to lapse the policy then again please let us know prior to the renewal date of your policy as if you tell us on the day it will be too late to stop the first payment being debited.

Vehicle Identity Check - (VIC)

The Vehicle Identity Check (VIC) is a scheme to help prevent stolen cars being passed off as repaired accident damaged cars. This is also known as ‘ringing’. You can check if a vehicle needs a VIC and submit your application online.

How a VIC marker is set against a vehicle?

Insurers should notify the Driver and Vehicle Licensing Agency (DVLA) of all cars ‘written off’ within salvage categories A, B or C. This notification will set a ‘VIC marker’ against the DVLA vehicle record. While a VIC marker remains set, DVLA won’t issue a registration certificate V5C, or vehicle licence reminder V11.

The VIC marker will only be removed when the car passes a VIC.

Checking a vehicle’s identity

The Vehicle and Operator Services Agency (VOSA) carries out the VIC. It’s designed to confirm the car’s identity and help ensure that the genuine car is returned to the road.

The VIC takes around 20 minutes to complete and involves comparing the details on the DVLA vehicle record against the car presented. The VIC is a check of identity, it doesn’t look at the quality of the repair or confirm road worthiness. If you have any concerns regarding these aspects, you should seek the opinion of an independent expert.

Once a car has passed a VIC, the V5C issued will be annotated to show ‘substantially repaired and/or accident damaged; identity checked on dd/mm/ccyy’.

Confirming if a VIC marker is set against a vehicle

You can check if a VIC marker is set, by making a vehicle enquiry through the Vehicle Enquiry section of DVLA’s vehicle online services. To make your enquiry you’ll need to know the vehicle registration mark and vehicle make.

Once you make an enquiry the VIC marker will only show if it’s been set against the vehicle record by DVLA.

You can also check if a VIC marker is set by contacting VOSA on 0300 123 9000.

Applying for a VIC

A VIC is available at 56 VOSA locations. You’ll need to complete a VIC1 application form and submit this to VOSA, together with the correct fee (see the table below).

You can submit the form online as long as you want to pay by either credit or debit card or have a VOSA pre-funded account. VOSA cannot collect your card details online, but will contact you for this once your VIC1 application form has been received.

Once your application has been processed, VOSA will notify you of your appointment.

Full instructions and the terms and conditions are given on page three of the VIC1 application form. A fee is payable.

Taking the car for a VIC

When you take your car for a VIC the following must apply:

  • Repairs must be conducted and the car must be roadworthy and capable of being driven under its own power
  • If it’s over three years old, the car must be covered by a valid MOT if it’s being driven to the VIC
  • The person driving the car must be insured
  • The car must display front and rear number plates if it’s being driven to the VIC – for assistance in obtaining number plates, contact VOSA on 0300 123 9000

A car can be driven directly to and from a pre-arranged VIC without road tax.

Following a VIC

If VOSA is satisfied with the identity of your car, you’ll be given a VIC20 pass certificate. DVLA will be electronically notified of the pass result.

You can apply to DVLA for a V5C using the V62 form. If your car was a category C ‘write off’ you should declare this when completing the form, as you are exempt from paying the V62 application fee.

If you submitted a V62 form to DVLA before taking your car for a VIC, you’ll have received a VIC notification letter from DVLA. This letter should now be returned to DVLA, with the declaration completed.

If VOSA cannot confirm the identity of your car, you’ll be issued with a VIC failure notice (VIC21), which will give the reasons for failure. VOSA will refer the case either to the police or DVLA for further investigation. VOSA will monitor its progress and tell you of the outcome once complete. This may take several weeks.

If following investigation, the car’s identity is confirmed as the original, VOSA will issue a pass result. However, if the car’s identity cannot be confirmed, the VIC marker will stay on the vehicle record and DVLA will not issue a registration certificate.

VIC appeals

If you don’t agree with the result of the test, you can make an appeal to VOSA. Appeals must be submitted on a VIC17 form, together with the correct fee.

Source: www.direct.gov.uk

What are the levels of a written off vehicle?

An explanation of the categories of a vehicle write off are listed below:

  • Category A – A vehicle which should have been totally crushed, including all its spare parts.
  • Category B – A vehicle from which spare parts may be salvaged, but the body shell should have been crushed and the car should never return to the road.
  • Category C – An extensively damaged vehicle which the insurer has decided not to repair, but which could be repaired and returned to the road.
  • Category D – A damaged vehicle which the insurer has decided not to repair, but which could be repaired and returned to the road.
  • Category F – A vehicle damaged by fire, which the insurer has decided not to repair.
  • Theft – These vehicles have not been recovered and ownership rests with the insurer who made the total loss payment. They are able to repossess the car as soon as it is identified, even if it has been bought innocently.

Vehicles categorised as A, B or C require a VIC test before the DVLA will issue a new registration document. This will then be noted on the V5C.

Directors’ and Officers’ insurance FAQs

I am a board member with various organisations; will I be covered for all my memberships?

Yes, you may cover the insured person for whomever and wherever they are working as long as these are specified at the start of your policy.

Will my spouse and family be covered for liability?

The policy may cover not only the shareholders but also their spouses, civil partners and assets.

What happens to the policy in the event of a merger or take-over?

In the event that someone acquires more than 50% of your company, or you consolidate with another company, there are procedures to amend your cover.

Will we remain covered in the event of a management buy-out?

As standard, you are covered for 30 days after the event of a management buy-out.

Do you require a shareholder to hold a certain percentage to be eligible for cover?

There is no minimum or maximum amount for eligibility.

Construction insurance FAQs Why do I need construction specific insurance?

Some general policies could contain inadequacies that would leave your business uninsured in the event of a major loss. Therefore, you may wish to protect your company with a construction industry specific policy.

Are labour-only subcontractors covered in the same way as direct PAYE staff under the Employers' Liability policy?

Yes, both types of employees are covered for the same risks, although it is very important you declare how your workforce are employed, as it will affect how your risks are charged for.

Is the financial rating of an insurer an important factor?

Yes, it is an important factor and we only use insurers with A-ratings.

Ratings measure an insurer’s financial situation and enable you to predict their ability to pay claims.

Some main contractors will not sub contract works to any companies not insured with an insurer holding a minimum of an A- financial rating (as determined by such companies as; Standard & Poors, A M Best, Moodys or Fitch Ratings).

By having a financially secure insurance policy in place, you will avoid restricting your business and the contracts you can take on.

Pearson Insurance Services will advise you further on any aspect of your insurances, free of charge.

Public liability insurance FAQs

I have heard that someone wants to make a claim against me what do I do now?

As soon as you become aware of a claim or potential claim being made against you for injury or damage: Notify us so that we may alert your insurers.

Do not ignore or dispose of any letter from any representative of or anyone making a claim against you. The claim is unlikely to go away and the situation will only get worse if not attended to promptly.

Pass all correspondence on to us, unanswered.

One of my employees had just had an accident at work, what should I do?

We recommend that you:

Report all accidents to us or direct to your insurers.

Meet your legal obligation to record accidents in your accident book.

Do not accept responsibility or agree to pay compensation even if you think it is obvious that it is your fault.

Allow your insurers to investigate and advise you of the best course of action to be taken.

If you accept liability before referral to your insurers then you could prejudice your and your insurers ability to deal with any claim made against you.

Sandra Bev and Phil Sigs - Pearson Insurance Services


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