Is policyholder responsible for named drivers actions
If a named driver gets caught drinking over the limit will policy holder be prosecuted or lose bonus. PJ
Could you please help? I have my business van insurance in my own name and home address and have 2 staff my drivers that are named drivers on the policy. One of them recently rolled back into a car at traffic lights, the claim went through and it was all down as my staff member that had the accident. When I recently took out another insurance on a private car, they have it down on the insurance database that I had the accident, when it was my staff member and not me. Can my name be taken off the insurance database that I had the accident?
This is how motor insurance works unfortunately - the policyholder is accountable for any claims.
As you took the van insurance policy in your own name, your previous no claims records (on your own car) would have been used on that policy thus giving you some discounts I would assume (the benefit) and subsequently any claims you or any drivers listed on the policy make is treated as if you were making the claim yourself (the drawback).
So although it was your staff who was involved in the accident, the claim is however recorded against you. In the database, your name will be listed against the claim and that's what is important to understand here. The accident could have been caused by someone else but on file, the policyholder's name is used.
Now once you've made a claim, you will have to declare it to the insurers for up to 5 years.
What you could do differently going forward, is to have your company name as the policyholder and add yourself and your staff as named drivers. This will separate your personal car policy from your commercial van insurance.
Thank you for your reply I'm very confused how the system of additional drivers works. If the policy is taken out in my name and address and I add my staff as additional drivers:
If they have an accident [even though they admit it was their fault] and it's down on the insurance that it was them, I have it put on the insurance database as it was myself that had the accident, so does the same apply if they have an accident whilst drug driving, drink driving, have an accident whilst playing with their phones, is that noted on the database as myself that was driving or are the insurance rules bent to suit, it is totally ridiculous that I was 10 miles away not driving the van when it was in an accident and I am being blamed.
What on earth!!! I am not letting this one rest with them, I understand the no claims side totally, they took 2 years of me, even though I asked them to protect my no claims at the start of my policy, and didn't notice they put "protected no claims NO".
If you buy a mobile phone with insurance for accidental damage and lends it to your friend who drops it causing the screen to smash, you will be the one making the claim to the insurer, not your friend.
Similarly, the details of the accident are saved under the name of the person who was driving the vehicle at that time (Your Staff) but the claim goes under the policyholder's name (You).
That's why they've knocked down your NCB entitlement.
If your staff was found drink driving, they will go to jail not you and if they caused damage to another vehicle, you will have to make the claim to your insurer to compensate the other party since the insurance certificate is in your name. Being a named driver just means that you as the policyholder have given them permission to use your vehicle and be insured with the same terms as you.
When trying to get a quote for car insurance, they will ask you whether you've made any claims in the last 5 years and this is what you'll have to disclose as you made one (even though you were not the one who had the accident).
Hope that clarifies things for you.
I understand that but it is not about the claims or losing no claims discount, it is about my name being on the database as having had an accident on the 1st of April this year when I didn't and every time I get an insurance quote I have to say I had an accident when I didn't.
I'm not supposed to lie when I get insurance quotes - if my staff was drink driving and had an accident he would obviously take the blame for being drunk whilst driving and the claim would be through my van insurance. I understand the claiming of my insurance that is fair. I take that insurance out to protect myself and others, would it go on the database that I was drunk and had an accident if I was not there, if not why does it go on the database that I have had a normal accident without being drunk when it was my staff member?
How would you or anyone feel if you were sent to prison for murder but it wasn't you, and it stayed on your record as having done it. No one would accept being accused of something they did not do and even less that it was on a database.
I get the losing my no claims, having to tell other insurance companies there was an claim on the policy, etc that's all true but what's not true is it was myself that had the accident so that should not be written down as me having had an accident.
I totally understand where you're coming from and I would be livid if I was in your situation too but I'm afraid I don't make those rules. I only shared what I know. So try to speak with your insurance company as they are the ones who can make any amendments to your records.
Loss of NCD only happens if you make a claim with your insurer and you're at fault, in which case the car insurance company will not be able to recover its costs and therefore reduces your no claims entitlement.
The main problem with having additional drivers on a car insurance policy is that they don't "really" get NCD as such and it's only the policyholder who earns the no claims at the end of the year. So that means that if a named driver were to make a claim, it is the policyholder who will lose out on the NCB.