Classic cars forum & vehicle restoration.

christine lowery · Posted: Wed Sep 17, 2014 2:25 pm Post subject: a load of tosh or ?

hi gang
a story form a mate at work
his mate sold a motorbike for cash did the paperwork and the new owner drove it away,
on the way home the new owner had an RTA and was done for no insurance by old mr plod.
however the other vehicles insurance company, checked the database and found that the said motorbke was at the time still insured by the previous owner, they claimed and where sucessfull
so original owner lost there no claims bonus ?

a tale of wo or utter tosh ?????
chris Confused

Riley Blue · Joined: 18 Jun 2008 Posts: 1751 Location: Derbyshire

True according to numerous posts elsewhere on-line.
_________________
David

1963 Riley 1.5
1965 Riley 1.5

Fatbloke · Posted: Wed Sep 17, 2014 3:39 pm Post subject:

I'd have thought that the only way that could be true was if the new owner/rider was named on the policy or the policy was for ANY rider (can you still get those?) So I think it's probably tosh... but who knows??
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Mike,

A Fatbloke in a Herald.

MikeEdwards · Joined: 25 May 2011 Posts: 2707 Location: South Cheshire

Hard to see how the police would do the new owner for no insurance if the other party's insurance company then found themselves able to claim. If the new owner is covered for them to claim on the policy, then the new owner shouldn't have been done for having no insurance.

kevin2306 · Posted: Wed Sep 17, 2014 6:25 pm Post subject:

My wifey works in insurance underwriting and says its tosh.
As the original owner had sold the vehicle, they then had no insurable interest in the vehicle, unless the original owner made any specific arrangements to cover the insurance of the vehicle after selling (which is unlikely unless they had an any driver policy and delayed the transfer of ownership) then they could not be held liable.

Kev

christine lowery · Posted: Wed Sep 17, 2014 7:42 pm Post subject:

hi kevin
thats a great an concise reply i thought it odd but the person who told me the story is adament its true it was one of his best mates that fell foul

maybe its something we have to beware of,the rules of the game are changing all the time and with the changes in road fund rules its now seller be carefull
chris Smile

Penman · Joined: 23 Nov 2007 Posts: 4860 Location: Swindon, Wilts.

Hi
As I understand it, in future, a vehicle will no longer be taxed after you have sold it.
I wonder if this means a seller must refuse to let it go until he has seen an email acknowledgement from DVLA of the change of ownership and a covernote from the buyers insurance.

Dealers have been asking to see covernotes for years, at least they have when I've done trade ins.
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ukdave2002 · Joined: 23 Nov 2007 Posts: 4236 Location: South Cheshire

Riley Blue · Joined: 18 Jun 2008 Posts: 1751 Location: Derbyshire

http://www.dailyrecord.co.uk/news/scottish-news/scots-biker-insurance-hell-after-4141840
_________________
David

1963 Riley 1.5
1965 Riley 1.5

Bitumen Boy · Posted: Thu Sep 18, 2014 11:01 am Post subject:

Old Wrench · Joined: 23 Dec 2013 Posts: 226 Location: Essex and France

Even if the selling owner did have an any driver policy, the minute he sold the vehicle then, as already pointed out:

1. He longer enjoyed an insurable interest:

2. His insurance indemnity would lapse:

3. Therefore the "Any Driver" extension would automatically become null and void: and thus voidable, by the underwriters.

If and where the new owner was the cause of an RTA, yet not indemnified, then the third party's insurer would seek redress of loss through the Motor Insurance Bureau: the jointly owned and funded non-profit body which acts as the indemnifier of last resort.

Which BTW we all pay for as our road risk policies carry a small surcharge, as part of the underwriters' cost of writing indemnities.

Ronniej · Posted: Thu Sep 18, 2014 1:39 pm Post subject: a load of tosh or?

I heard a very similar story on the radio (possibly Radio 4 ).
In this case the man who sold the motorbike forgot to tell his insurance company that he had sold the bike. The new owner had an accident a week later (I think he was killed but I am uncertain about this.)
The story goes that because his insurance policy was still current when the accident happened his insurance company would be liable if any claim was made. They had written to him to advise that if that happened they would seek recovery of any sums they paid from him.
It makes no sense to me and I wonder if someone in the insurance company just got it completely wrong. Or is it just a silly urban myth?
Either way I am not losing any sleep over it but I would be interested to hear the facts.

Riley Blue · Joined: 18 Jun 2008 Posts: 1751 Location: Derbyshire

Click on the link I posted earlier today to read about it.
_________________
David

1963 Riley 1.5
1965 Riley 1.5

Old Wrench · Joined: 23 Dec 2013 Posts: 226 Location: Essex and France

I have just noticed: it is a Scottish case.

And Scottish law is different in many respects to the law of England and Wales.

Also, I seem to recall it was an offence to fail to make sure the buyer of any vehicle you sell, had insurance in force before you allow them to drive/ride it away.