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www.allianzebroker.co.uk
Motor Trade Newsletter Motor trade Newletter
Pg 3 Beware the Cat Burglar Protect your client from cat converter theft Pg 4 Get Switched on to Electric Cars Our risk management advice Pg 6 Who’s driving your car? The risks of unaccompanied demos Pg 8 Health and Safety Help your clients create a safer workplace Pg 11 WIN Saracens rugby tickets Two sets of two to give away
Going the extra mile Insurance is about more than paying an annual premium, so at Allianz we’ve developed a range of free value added services to support your clients throughout the year; helping them comply with regulations, minimise costs and manage their businesses more efficiently.
Alongside guides on different risks there are a number of interactive tools your clients can use. These include risk improvement reports, allowing them to identify and resolve issues within their businesses, and a health and safety toolkit. www.riskdirector.co.uk
Our preferred suppliers can assist in the effective management of the property, health and safety and employee risks, which can ultimately lead to reduced claims costs.
Allianz Commercial Motor Insurance Database This online service helps your clients meet their legal requirement of adding vehicle details to the Motor Insurance Database. Failure to comply can result in a Fixed Penalty Notice of £100; the vehicle being clamped, seized or disposed of; and a court prosecution with a maximum fine of £1,000. www.allianz.co.uk/commercial/mid
Risk Director This online service provides comprehensive risk management information, guidance and support to help your clients comply with legislation and keep their businesses as safe and efficient as possible.
For intermediary use only
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VAL U E AD D E D S ER V IC E S
Case Analysis Tool This tool allows you and your clients to pinpoint ‘at risk’ areas of their businesses. By analysing their claims data it enables trends to be recognised quickly. As an example, the data might show which sites or employees are most prone to a particular type of accident, enabling training to be provided to prevent further incidents. Partnership Plus Because managing risk brings benefits to us as well as to you and your clients, with Allianz Partnership Plus we can provide financial assistance towards the cost of implementing risk management initiatives. eServices This is our suite of online engineering inspection report management tools. Your clients can manage their plant and machinery online, with quick and secure access to their inspection records and historical data. eServices also provides your clients with valuable management information including Gap analysis, reports issued between dates and plant not available reports, including reasons the examination was not possible. This service can help to keep their businesses compliant. www.eservices-allianzengineering.co.uk
Allianz Legal Online Available with Commercial Legal Expenses, this gives your client free access to more than 100 legal documents that can be quickly personalised to suit their requirements. As well as saving them time and hassle it can also save them thousands of pounds on solicitors‘ fees. On average, a solicitor will charge £812 to draft an employee handbook; £595 for a fire risk compliance review; £418 for an employment agreement; and £116 for an employee dismissal letter. Legal Online doesn’t cost a penny! www.allianzlegal.secureclient.co.uk Claims Team When the moment of truth arrives, we have a dedicated UK based motor trade claims team ready to help. You can provide the necessary information in one call and we will do the rest. 0844 412 9996 If you’d like to know more about any of our products and services, please contact your local Allianz branch office.
Preferred suppliers RoSPA, Tracker Network, The AA, Allianz Legal Protection, Autoglass, Glassolutions.
Risk Management allowing customers to identify and resolve issues within their businesses, and a health and safety toolkit.
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C AT A L Y TIC C O N VE R T E R T H EF T
For more information about protecting your clients from catalytic converter theft visit our Risk Director website www.allianzriskdirector. co.uk
Beware the Cat Burglar Increases in the value of precious metals, coupled with the tough economic climate have resulted in a sharp rise in the theft of catalytic converters, with police forces around the country warning car owners to be vigilant. Unfortunately, car dealerships are particularly rich pickings for the thieves. As an example, since April this year, more than 100 catalytic converters have been reported stolen from forecourts in Devon alone. Easy money Catalytic converters represent easy money to criminals. Containing platinum, palladium and rhodium, a stolen cat can be sold as scrap for several hundred pounds. Adding to their appeal, they only take a matter of minutes to remove. Where a vehicle has a large ground clearance, it‘s a simple process for a thief to access the converter and remove it. And, where there are several vehicles available, an hour‘s work can net them several thousand pounds. Whilst the criminals are raking in the proceeds from a theft, the car owners are shelling out for new converters and it’s a costly experience. A new one can cost up to £1,000, plus there may also be damage to the exhaust system which will need to be repaired or replaced.
Protect the vehicle Deterrents are available to help prevent this type of theft. These include cages, alarms and clamps. But fitting these can be costly and in some instances may result in additional damage to the vehicle if a thief attempts to steal a converter. Reassuringly, motor manufacturers are also working hard to stamp out this crime. Ford and Retainagroup have developed permanent markings for catalytic converters so they can be traced if they are recovered. While this type of initiative may help you get a stolen catalytic converter back, it won‘t necessarily stop the crime in the first place. Crime prevention Preventing the crime is the best response. The following tips will help to reduce the risk of your clients becoming a victim of this type of theft: • ensure vehicles are out of sight by storing them in a
secure compound if possible The increase in claims for stolen catalytic converters is a trend insurers are becoming accustomed to. Fluctuations in market price is driving a new wave of metal thefts.
• keep the vehicles in a well-lit place at night • use security measures such as CCTV and alarms • keep vehicles in different locations
This will help to minimise any loss.
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RI S K M A N A GE M E N T AD V IC E
Get switched on to Electric Cars Low mileage capabilities and high prices mean that sales of electric cars remain low, with the Society of Motor Manufacturers and Traders reporting that just 749 had been sold in the first nine months of this year. However, as technology improves, it‘s set to spark interest in electric vehicles in both the commercial and retail sectors.
As these vehicles present a different insurance risk to those with a traditional internal combustion engine, growth in sales will have implications for motor traders who are selling, servicing or repairing them.
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Fire hazards Modern electric vehicles are powered by a rechargeable battery that is plugged in either at home or at an electric car recharging point. These recharging points will be required in motor trade businesses dealing with electric vehicles. They need to be aware that this increases the fire risk, especially if batteries are likely to be charged overnight or at weekends when staff aren‘t present. To reduce this risk, motor traders must ensure that careful consideration is given to the design of charging areas and that all work bays have undergone fire and safety assessments (see box for more information on managing this risk). Other risks In addition to the increased fire risk, there are other risks associated with electric cars that dealers and garages
Understanding the risk factors, and taking steps to manage them, will ensure your clients can benefit as demand continues to grow for electric vehicles.
need to consider. Because charging is carried out with a cable there are potential liability issues, such as tripping. This can be minimised by using a short cable and designing the charging points appropriately. The high cost of battery packs, coupled with the fact they can be used in other electric vehicles, also means they present a theft risk. Protecting electric vehicles on premises is essential. There‘s also legislation in place relating to the disposal of batteries - the EC Battery Directive and the EC End of Life Vehicles Directive. These look to reduce waste and stipulate how hazardous materials should be disposed of. It’s important that garages adhere to the requirements.
Going electric - risk management advice As the number of electric vehicles increases, more and more motor trade clients will want to include them in their business. Establishing a safe environment and good working practices will help to minimise risk. • Charging posts must be located away from identified fire hazards and protected with bollards or metal barriers to prevent damage by vehicles • Charging overnight should be avoided • Sufficient space should be left around the charging posts to allow vehicle movement • Rapid charging points (DC fast charge) should be clearly differentiated from conventional charging points and labels must not be removed or defaced • Avoid storing any flammable or combustible materials nearby to prevent sparks causing an explosion • Ensure engineers are adequately trained and adhere to safe working practices • Provide defined handling procedures for working on electric vehicles • Ensure personal protective equipment (PPE) is worn when working on or around electric vehicles.
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unaccompa nied D E M O S
Who’s driving your car Providing prospective customers with a demonstrator vehicle is common practice in the motor trade market. But, while an unaccompanied demonstration can be a great way to bag a sale, it also presents a number of risks to the dealership. Understanding these risks and putting procedures in place to mitigate them will help your clients safeguard their businesses and profit. The risks
Checklist
There are a number of risks to a dealership; damage to the vehicle, damage to the property, personal injury and theft.
This checklist will help your clients appreciate the risks and turn unaccompanied demos into sales and not expensive insurance claims and reputational damage.
While the cost of any damage may be picked up by the insurer, these claims can lead to higher premiums. In addition, if a dealer loans a car to a young driver and their inexperience results in a multi-car pileup, there‘s a risk of reputational damage too. Theft is a major issue too, especially as there are more cases of criminals using fraudulent documentation, leaving a stolen vehicle as security or using a cloned or switch key so they can steal the vehicle later.
Check the driver‘s identification As well as a driving licence, ask for a second piece of identification such as a passport, utility bill or cheque book. This will help reduce the risk of fraud and is often a requirement for insurance.
With the implications for a dealer far-reaching, it‘s essential they have effective controls in place to reduce the risks as much as possible.
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Set guidelines on vehicle suitability The age and experience of a driver will affect the risk they present and large claims can occur where a driver is behind the wheel of something more powerful than their usual vehicle. The licence check will highlight experience as well as details such as motoring offences, which may affect a decision to loan a vehicle.
Understanding these risks and putting procedures in place to mitigate them will help your clients safeguard their businesses and profit.
Determine insurance requirements Wherever possible the customer should be advised to take out insurance for the vehicle, with a copy of the certificate or cover note taken by the dealer. Where this isn’t possible, the dealer should take a prepayment upfront to cover the policy excess. This will encourage a more cautious approach to driving and may deter the opportunistic thief. Ensure the customer knows what procedures are in place if they are involved in an accident and what action they must take. Establish security for the vehicle It‘s standard practice for the customer to leave their own vehicle and keys as security but where this isn‘t possible, set guidelines on acceptable security. This could be their original identification documents or credit cards. Run vehicle checks A dealer should give the customer an induction to the controls, safety features and seat positioning and
consider accompanying them for a short drive so they are familiar with the vehicle. This helps to reduce the risk of accidents. The vehicle should also be checked when it is returned, with any damage documented in the event of a future claim. Manage demo stock Poor controls around demo stock can be a magnet to thieves so a dealer should set up rules around how long a customer can have a vehicle and where and when it needs to be returned. Regular stock checks and key checks will make it easier to notice if a vehicle is damaged or missing and will improve the chances of recovering it. For example, check that the stock keys and demo keys match up. Only senior employees should authorise unaccompanied demo’s. Ensuring a consistent approach will help to reduce risk and create a professional, well managed business. 7
HEA LT H A N D S A F E TY
Health and Safety Health and safety gets the blame for bans on everything from bunting at a street party and conkers in the playground to pins for your remembrance poppy. But while there are plenty of jokes about the UK’s approach to health and safety, it’s something your clients can‘t afford to laugh about. Workplace accidents can cause additional work and delays as well as reputational damage which will affect the success of the business. On top of that, breach the health and safety regulations, and your clients could be looking at a significant fine or even a prison sentence. Taking health and safety seriously may also help to protect them from fraud. Insurers are noticing a shift in this crime, with more fraudulent claims for slips and trips being reported. Whether safeguarding their employees and customers or reducing the chances of a fraudster trying it on, a robust approach to health and safety will benefit your clients’ businesses. These tips will help them create a safer workplace:
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Top Tips: Understand legal obligations The Health and Safety Executive (HSE) provides advice and guidance on a business’s responsibilities to its employees and customers. As well as requirements for all employers, it can also provide specifics for different trades, for example the motor vehicle repair industry. More information can be found at www.hse.gov.uk
Keep the premises safe A risk assessment will identify any significant hazards and what needs to be done to eliminate or reduce them. Employers need to provide this information to employees too and keep a signed record of any relevant training. Employers should also ensure that all equipment is in good safe order. For some items it may be necessary to have regular inspections so determine how often and by whom these should be carried out.
Create a health and safety culture If an employer jokes about health and safety, employees will too so make sure it’s taken seriously. Training and processes for inspections and risk assessments will help health and safety become part of a firm’s culture and employers should also encourage staff to draw their attention to any health and safety issues they may have spotted in the workplace.
Be prepared for accidents If an accident does occur, it’s essential that it’s documented as thoroughly as possible. Taking witness statements and, if applicable, photographs is good practice. Having these processes in place helps to create a professional image, which may deter a fraudster, but it can also help if there’s an insurance claim. With more details recorded at the time of the accident, determining liability and, where applicable, quantum will be easier and quicker. Allianz’s Risk Director contains information to help your clients understand their health and safety responsibilities. For more details visit www.riskdirector.co.uk
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O ur brand
The Allianz brand – our sponsorship platforms Formula One We’ve been involved with F1 since 2000 and the main focus of our engagement is road safety. Many F1 banners read ‘Allianz: Drive Safely’ and in line with this message, we also brand the pit lane, medical cars and other safety devices.
Paralympics Since 2006, we’ve been actively supporting the Paralympic movement and athletes around the world. In the UK recently, we had Paralympic medallists Ellie Simmons and David Weir as part of our own Team Allianz.
St Andrews Links Since 2009, we’ve been partner to the oldest and most prestigious public golf course in the world. One focus is to help St Andrews to preserve their prestigious coast line, because we care about climate change.
Allianz Arena and FC Bayern Munich Since 2005, the Allianz Arena has become an iconic and tangible home for the Allianz brand. As well as being the naming rights partner, we are also heavily involved in the stadium’s safety and accessibility inspections.
Saracens Rugby Union For more information about our sponsorship platforms visit www.sponsoring. allianz.com
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This year we agreed a major new sponsorship with leading rugby union club Saracens, last year’s winner of the Premiership title and a team that boasts seven England Internationals. This long-term partnership will see us as team sponsor and from February next year, Saracens will move to a new home stadium in North London, to be called Allianz Park.
AN D F I na L L Y
WIN rugby tickets To celebrate our most recent sponsorship deal, we have two sets of two tickets to give away for a Saracens v Bath on the 4th of May 2013. To be in with a chance of winning, all we want is your feedback. Your views are important and help us to develop new products and services so, as a thank you, we will automatically enter you into the free prize draw. Click here to tell us what you think of our service, products and newsletter. For terms and conditions and closing date please refer to covering email.
ELTO Update The Employers Liability Tracing Office service went live in April 2011 and since then membership has increased to over 99% of the EL insurance market. Over 1,700 regular users are submitting around 5,000 enquiries per month.
ACOM 3960 12/12
Whilst ELTO is already producing greater tracing success, the collection of Employers Reference Numbers (ERN), a compulsory FSA requirement for every new or renewing Employers Liability policy since April 2012, remains unsatisfactorily low. We are therefore asking you once again to ensure you are doing all you can to assist in the supply of this information.
Some clients appear to be uncertain about why this information is necessary or have difficulty in identifying their ERN, so you may find our e-broker website helpful. This includes an ELTO Employers Guide dealing with these concerns and a Brokers Guide which identifies the ways in which you can pass your clients’ ELTO data to us: http://www.allianzebroker.co.uk/elto/ supplyingeltodata.htm
All technical guidance notes given here in are provided as information and general guidance only on risk management topics and are not intended to be advice for any specific requirements. Readers should seek further advice when dealing with their individual and particular situations. Allianz Insurance plc shall have no liability for any action taken as a result of and in reliance on the information contained in this document. The information contained in this document is correct at date of going to print and may be subject to change at any time. All rights reserved. Allianz Insurance plc. Registered in England number 84638. Registered office: 57 Ladymead, Guildford, Surrey, GU11DB, United Kingdom. Allianz Insurance plc is a member of the Association of British Insurers. Allianz Insurance plc is authorised and regulated by the Financial Services Authority and this can be checked by visiting the FSA’s website at www.fsa.gov.uk or by contacting the FSA on 08456061234. Our registration number is 121849.
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