As a result of the increase in both the number and the quantum of claims, our basic motor premiums have been reviewed. We have, however, managed to limit the increase and are pleased to advise that it remains below the rate at which claims have increased as well as the percentage by which motor repair costs have escalated. The increases are as follows: 15% on caravans and trailers, 12.5% on heavy commercial vehicles and 5% on all other motor classes.
These changes will come into effect as follows:
Personal lines (IMP) from 1 June 2008
New business on all other lines of business from 1 July 2008
Renewals on all other lines of business from 1 July 2008
The increase on classes other than personal lines is being undertaken in addition to the ongoing implementation of our new rating system for private type motor vehicles and LDVs that started in October 2007.
Please note that where a policy has been subject to a claim over the past 12 months and depending on the personal risk profile of the customer, a greater variation in premium may be reflected. This step has been taken to avoid penalising our claim-free customers.
The amended premiums will, as usual, be communicated to policyholders in accordance with Policyholder Protection Rules.
Thank you for your support. If you have any questions regarding your policies, please contact your Broker Manager or your nearest Zurich sales office.
