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MORE INFO ON INSURANCE 'BUM DEALS' NEEDED
Subject: Insurance
Hello, I remember reading in MAG news that some people had trouble getting third party only insurance cover and that MAG where considering a campaign in this area. I have been refused third party only for both bikes and cars and have to pay for TPFT.
Also each year the cost goes up and the cover goes down. Business use was silently dropped from my M/C policy without me noticing and now my car policy has removed the ability to drive/ride other vehicles.
When I quizzed them about this they lied and said it had always been this way. These changes seem to be designed so they can wiggle out of paying in the event of a claim.
Are you still interested in these issues?
Regards,
Neil Faulks
MAG is fully aware of the ' cartel practices' of motorcycle insurance companies. Unfortunately the response from government is that 'provided TPO is included in the contract, the potential policy holder is obliged to take what the insurers give them – which may include TPFT or Fully Comp - or go elsewhere'.
Further, in this country because motorcycle insurers can insure the person as well as the vehicle (this is not the case in other European countries where only the vehicle is insured for TPO), this gives the insurers a strangle hold on policy holders. What the government fails to accept is that motorcycle insurance is dominated by three companies - NU, NIG and Equity Red Star.
This means that they set the pace and all the others (approximately 15 insurers) follow. This is not so much the case with car insurers, although I know that they are also restrict the market.
Compulsory insurance coupled with the restrictive 'oligopolistic' practices of the motorcycle insurers means that they can charge what they like and get away with it.
We would like to put together a case for the OFT (Office of Fair Trading) and the FSA (Financial Services Authority) to demonstrate that riders are being stitched up but we need people like yourself to do a number of things.
1) write to the OFT (check website for details of who to write to www.oft.gov.uk )
2) write to the FSA (check website for details of who to write to www.fsa.gov.uk )
Could you please then send copies to us? If we can put together enough complaints then we have a chance of getting the government to recognise that there is a serious problem with motorcycle insurers.
Dear all, I would be interested if any of you know of similar experiences with insurers. I would like to document such cases in more detail.
Thank you
Elaine Hardy
National Research Officer
MAG [UK]
E-mail: research@mag-uk.org
Tel: 0870 774 3567
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