Illogical Insurance & A Public Question!!!

Gludy

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Just received a letter from my insurance broker seeking a 25% premium increase.
It is all explained by the fact that such an increase is needed because of the EC regulation demanding a minimum 3rd party liability of £1.2m up from £200k – a huge 6 fold increase.

I phoned my broker and pointed out that all my policies for the last 4 years have been based on a £2m 3rd party liability and indeed the Marina demand this – so how come, despite yet another no claim year, I face a 25% increase because the 3rd party liability has been increased to a lower level than I am insured at anyway!!!!

She said that was the reason given by the insurance company!!!! She then said maybe they have to get money in to pay for the other policies where the insurance went up from 200k to £1.2m !!!!

I have informed the broker that there is simply no logic behind the reasoning – those policy holders who have to increase their liability insurance 6 fold should pay for their insurance, not me!!!!

I am told the logic, or lack of it, comes from haven Knox-Johnson.

So I challenge them to answer in public, on this forum, why they are putting out this reason as the premium increase to my policy that has always carried a £2m third party cover?
 

jhr

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I'm also insured via H K-J and, though I may be wrong (I haven't got the papers with me), I think they have increased my 3rd Party limit from £2m to £3m, with a resultant increase in premium.

I have a vague recollection that the increase stems from a recommendation about appropriate levels of cover in light of the increase of the EU recommended minimum so that - even if it's not legally required - insurers are tending to specify £3m 3rd party cover on marine policies. I don't know if this is what's happened to you, but it might explain why the premium has gone up so much - though I suspect your increase may have been a leetle bit more than mine, as your boat is just a tad more valuable /forums/images/graemlins/smile.gif.

Every marine policy I have ever seen in the past - even on my £250 Mirror dinghy - has specified £2m 3rd party cover, so I'm not sure who has been getting away with less, if anyone......
 

Gludy

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Re: Illogical Insurance & A Public Question!!!

The whole point is that my broker has quoted them in their letter to the effect that the reason for my hefty increase in premium is due to the fact that the minimum level of 3rd party cover has gone from 200k to £1.2m. This cannot be the reason as I already had £2m cover which is well over this.

I have placed a call with the Knox-Johnson and await their response.

I am afraid I do not sit back and accept a 20% to 25% increase for a stated reason that does not make any sense.
 

bobupanddown

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It seems to me you are being ripped off!. Public liability is usually only a small part of the overall insurance premium. Certainly not 25%.
Perhaps its a bit like my home insurance.
My renewal came through at £505( apparently they had checked my policy and this was the best price)It was an increase of £160 on last year! So I went on their website and reapplied with excactly the same terms as before and magically my premium cxame out at exactly the same as last year.
Try shopping around or just reapplying to your present company.
 

jhr

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Re: Illogical Insurance & A Public Question!!!

Yes, I understand all that, I was just wondering if there were some other reason. It'll be interesting to see what H K-J say.

One further alternative explanation (and I am theorising here) is that £1.2 million has replaced £200k as the maximum award that may be made to any individual for injuries incurred in a marine third party claim. If that's the case, the overall amount that insurers will pay out is bound to increase, because awards will be bigger across the board and this will be reflected in all premia. To clarify further, a third party claim from an individual against you, that could only have cost them £200k last year, would now have the potential to cost them £1.2 million, so the potential liability in respect of your policy has increased, even if the overall cap hasn't. If that's really the case, then £3m cover might be wise, anyway................
 

mirage

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Re: Illogical Insurance & A Public Question!!!

There is no limit for 3rd party personal injury claims, it's what ever a court decides, if you haven't got enough insurance cover to pay the award, you pay the extra out of your own pocket.
 

steverow

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Paul,

Give Stephen Knipe a ring at Porthcawl Insurance Consultants.
01656 784872. I'm sure he will give you a much better deal through NIS.
Kick the others into touch, they're trying it on.
Mine only went up a little ths year, nothing like 20%.
I already have £2 million TPL.

Steve.
 
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Deleted User YDKXO

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Looking at it logically, Gludy, its not the increase from last year which is pertinent but how your new premium compares against that quoted by other insurance companies. I mean if your present company puts your premium up 25% because the chairman fancies a new Bentley but they're still more competitive than anyone else, then you're going to stick with then, are'nt you? On the other hand, if they come up with some perfectly reasonable excuse for putting your premium up but it makes them more expensive than anyone else, you're gonna walk are'nt you?
So never mind the reason, get a more competitive quote from elsewhere and tell them to match it or else
 

gjgm

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I rather doubt they have interest or time to go through policy by policy. More, that an assessment of total increase in claims equates overall to a 25pct increase in premium. there was talk about this months ago in the mags. But just like any other insurance, if you dont like the premium, ask someone else. Why bother yourself asking them to explain how they calculate? Ever cared how they calculate a premium before?
 

Gludy

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Re: Illogical Insurance & A Public Question!!!

H=K-J have called me.

The original explanation is not really right and you guessed the real issue here:-

Previously it was almost impossible for a third party claim to exceed £250k, so the £2m cover was very difficult to ever get to. In effect it was cheap cover because there was no history of anyone ever coming close to it and the legal oddes were stacked against it.
Now the law has changed, the min cover has risen from £200k to £1.2m claims really could approach £2m so they all got together and increased the ceiling to £3m knowing that the rare, if not very rare case could reach £2m.

Having looked again, the exact increase of mine is actually less than 20% but that is still very steep and I shall now shop around. Still cannot see how much more than a few percent is acceptable for 3rd party increase.

Gone fishing - Swansea seeks a £2m cover not £3m.

Cheers
 

Gludy

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Re: Illogical Insurance & A Public Question!!!

I queried my home insurance last week - shopped around a got an increased cover for less than half of the renewal quote a saving of over £700! So maybe tis time to do the same with the boat.

It was almost the same percentage saving on my car - going direct save me 40% of the premium.
 
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