News

Chancellor Announces Another Increase In Insurance Premium Tax (IPT)

Many of you will be aware that most general insurance policy premiums are subject to Insurance Premium Tax (IPT) at 10%. The sort of policies this applies to include the likes of, motor, home, private health insurance and pet insurance.

That’s all about to change as the Chancellor of the Exchequer announced in his Autumn Statement of a few days ago that this tax was being increased by 2% to 12% with effect from the 1st June 2017. This will be the third time this tax has been increased since November 2015. On the 1st November last year IPT went up from 6% to 9.5% – a rise of 3.5% and then it increased by 0.5% to 10% on the 1st October 2016.

This means that, if you are currently paying say £500 per annum for your motor insurance, say £400 per annum for your home insurance, say £300 per annum for your pet insurance and say £1,000 per annum for your private health cover then you would see your total premiums for these policies increase by £44 per annum which, if you pay monthly, means that you would have to find an extra £3.66 per month. This increase would exceed the forecast saving of £40 per annum that motorists may make if certain changes proposed by the Government were made to how whiplash claims are dealt with as referred to in our news article of the 17th November 2016.

This announcement has not gone down well with many in the insurance industry including the Association of British Insurers (ABI) that is concerned how hard it will hit some people. Of course, this increase will particularly affect those who are paying the highest premiums for their cover such as young drivers and motorists living in some inner city areas. Unfortunately, this rise may result in more uninsured drivers on our roads.

The ABI estimate that in excess of 50 million policies will be affected by this increase. Apparently, in Europe, the UK will have the 6th largest rate for IPT. It is estimated that by 2018/2019 Insurance Premium Tax will add around £6 billion to the Government’s “coffers”. The 20% IPT rate used for what some consider to be luxury insurance products including travel insurance, mechanical/electrical appliances insurance and even spacecraft insurance has remained unchanged.

The government will argue that the general cost of IPT throughout Europe is 19% but this does not take into account that the average motor insurance premium paid by UK’s drivers is significantly higher to begin with. In fact, the UK has the fourth most expensive average motor insurance premium in the world (behind the US, Austria and Germany).

It is to be hoped that this announcement does not encourage some policyholders to cancel any of their insurance policies as they no doubt provide valuable cover. In the case of motor insurance, it is a legal requirement that motorised vehicles are insured unless they are kept off the public road system and declared SORN (Statutory Off Road Notification).

Here at AIB Insurance, whilst we can obviously do nothing to prevent this increase in IPT, we will continue as we always have done to endeavour to provide our customers with competitive quotations for their insurance policies from the extensive panel of insurers at our disposal.

UK General Insurers Pay Out Over £56 Million A Day

The Association of British Insurers (ABI) has recently published statistics showing that, last year, general insurance companies paid out £56.7 million a day to policyholders. This included payouts for people that had the likes of protection, home, motor and business insurance policies.

Claims payouts for damage to property amounted to £15 million a day. Of that figure, £6.9 million was paid out daily in respect of commercial claims that were made by owners of businesses. The balance of £8.1 million per day was paid out to owners of residential properties so no doubt included things like damage to properties caused by fire and flood and subsidence.

Payments were made to motorists totaling £28.6 million per day who claimed on their motor insurance policies. This sum will no doubt have been paid to cover the likes of claims for personal injuries such as whiplash and for damage to vehicles that were either repaired or had to be replaced.

Travel insurers paid out £1 million a day to holidaymakers who claimed on their travel insurance policies no doubt for things like medical expenses, flight delays and lost luggage.

Insurance companies providing protection cover including life, terminal illness, income protection and critical illness insurance paid out £9.9 million every day to policyholders and beneficiaries to provide financial support at a time of need.

Trade credit insurance policies paid out £400,000 a day. This sort of cover assisted businesses that were owed monies by another business that was unable to pay the sum outstanding.

We are a nation of pet lovers and many people choose to insure their pets. You may be interested to know that £1.8 million was paid out every day in 2015 towards vet bills.

You may also be interested to note that, according to figures recently issued by the ABI, in 2014 and 2015, 84% of claims on house insurance policies were paid out, 99% of claims on private motor insurance policies were met and 87% of claims on travel insurance policies were paid out.

Here at AIB Insurance, we will gladly endeavor to assist any of our clients who wish to make a claim in respect of a policy that was arranged through ourselves. In this respect, please give us a call on 02380 268 351.

P J Hayman & Company Added To Our Panel

It is with great pleasure that we announce the addition of P J Hayman & Company to our panel of insurers. The insurers that we partner with are carefully chosen and we are extremely pleased to be doing so with this respected business.

P J Hayman & Company, located in Hampshire, was established in 1990 and provides specialist schemes and travel insurance. Over the years their business has grown and now has over 40 staff who pride themselves on providing a quality, professional customer service whether it be in respect of arranging suitable cover or dealing with a claim.

They offer a range of specialist insurance products that are suitable for many of our clients who enjoy adventure based trips as well as long stay holidays. There is also the option of “Independent Traveller” cover. They can even arrange travel cover for many people with pre-existing medical conditions as well as putting travel insurance in place with no upper age limit for people making both annual multi-trips and single trips overseas.

They have an Adventures Activity Travel Insurance policy that is designed to cover individuals and groups who take part in a huge selection of activity holidays or working abroad as well as participating in amateur and professional sports and hazardous pursuits. For instance, cover can be arranged for the likes of hang gliders, skydivers, paragliders, paramotorists, black water canoeing, bobsleigh, caving, gliding, hot air ballooning, mountaineering, parachuting and trekking to name but a few.

A comprehensive level of cover is provided to provide our valued clients with complete peace of mind. For instance, the Adventures policy provides search and rescue cover of up to £50,000 following an accident.

We look forward to working closely with P J Hayman & Company.

Further information about them can be found on their website at http://www.pjhayman.com/

Whiplash Claims Clampdown Could Benefit Motorists

As many of you will be aware, the cost of car insurance has been rising in the last 12 months or so for a number of reasons. One of the factors that effects premiums for such cover is the amount that insurance companies pay out for claims made by people who have suffered personal injuries.

Whilst the majority of such claims are no doubt perfectly legitimate, there are unfortunately some whiplash claims that are submitted by a number of motorists that are either fraudulent or inflated. Unfortunately, the honest motorist suffers financially as a result of such claims by paying higher motor insurance premiums.

It is interesting that there has been a drop in the number of road traffic accidents yet, rather surprisingly, there has been a 50% increase in the number of whiplash claims being received by insurers here in the UK in comparison to 10 years ago.

Well, the Ministry of Justice has produced a consultation paper in respect of whiplash claims and it is hoped that, should the suggestions put forward be implemented, it could save the insurance industry in the region of £1 billion. Insurance companies have agreed to pass on any savings to its motor insurance policyholders. As a result, motorists could see their premiums reducing by in the region of £40 per annum.

Some of the measures proposed include increasing the current £1,000 personal injury claims limit to £5,000 that can be dealt with in the small claims court, putting a ceiling of £425 on how much someone can claim for a minor whiplash injury which is considerably less than the £1,850 that is being paid out on average for such claims at the present time and medical evidence would have to be provided to prove the injury before a compensation payment is made.

The consultation process is to be in place until the 6th January 2017. We are sure that you will agree that anything that can be done to lower the cost of motor insurance is to be welcomed.

Second Ferrari 250 GTO Built Being Sold

Those of you that have an interest in classic cars will be aware how highly thought of and sought after the Ferrari 250 GTO is. In fact, a 1963 model sold for a world record price of £32 million back in 2013. Rarely do they become available for sale.

Well, that record may be going to be broken. A delightful blue white stripped left hand drive Ferrari 250 GTO Berlinetta Scaglietti Series One built in 1962 could sell for as much as £45 million. It was the second 250 GTO ever built and the first to be raced so it has a special history. Only thirty-nine Ferrari 250 GTOs were ever manufactured.

Initially, it was used at Monza for factory tests before entering a race in March 1962 at the 11th Annual Florida Grand Prix of Endurance, Sebring 12 hours where it finished second overall but was first in its class. In June 1962 it took part in the Le Mans 24 hour race where it finished in 6th place overall and third in its class. It subsequently took part in numerous other races.

In 1968 the classic Ferrari was sold to Mr B Stayman who lived in the USA for $2,500. It had a number of other owners with Mr M De Friece from the USA paying $125,000 for it in September 1978. Its most recent owner Mr BJ Carl purchased it in September 1997. The vehicle took part in a race at the Goodwood Revival in the UK in September 1999. It has been put on display at a number of Concours d’Elegance events.

It is now being sold by Talacrest here in the UK. The company is a specialist in the buying and selling of classic Ferrari cars and has sold over 1,700 Ferraris over the years.

So, if you are interested in buying a classic Ferrari 250 GTO then this may be your opportunity.

Classic Car Sells On Social Media For £825,000

An anonymous buyer has recently purchased a classic car for £825,000 via social media with this believed to be the first time that such a sale has been completed directly on social media. Coys Auctioneers arranged for the sale of the car using the Vero platform in this respect.

The vehicle in question was an elegant 1964 Aston Martin DB5 with a body colour of silver birch. It had been on display at the Paris Motor Show – Mondial de L’Automobile 2016 where it was seen by the eventual purchaser. It had been fully restored and was a fine example of this classic sports car. It was in dry storage for 20 years and was not driven during that period. Its engine was rebuilt and an overhaul was carried out of the gearbox and suspension system.

Interestingly, another record has been broken in addition to the one mentioned above as it is believed to be the biggest transaction carried out using Apple Pay.

Coys were also using this platform to sell some other classic vehicles that included a Bentley Continental S2 and a couple of Ferraris – a Daytona and a Dino 246. It will be interesting to see if we will ever witness the likes of a Ferrari 250 GTO be sold for many millions of pounds in this way?

Here at AIB Insurance we have insured many classic and vintage vehicles. So, if you are looking to buy such a car for the first time or your existing classic car insurance is coming up for renewal, why not get in touch with us on 02380 268 351. One of our friendly, experienced members of staff will happily seek to obtain a competitive quote on your behalf from our extensive panel of highly reputable insurance companies without any obligation for your consideration.

Anti-Poaching Dogs Parachute Into Action

The poaching of the likes of rhino and elephant tusks in South Africa is a significant problem so we are sure you will agree that anything that can be done to catch those involved has got to be welcomed. You may be interested to read that specially trained dogs are being parachuted into the wilderness to help find and capture poachers.

The sooner that the authorities can be in the close vicinity of where the poachers are carrying out their illegal work the better to give them the best chance of arresting the perpetrator(s). So, over in certain parts of South Africa, a trainer and his or her dog can be quickly tandem skydived from several thousand feet or abseil from a helicopter into the remote bush to hopefully sniff out poachers. Obviously, speed of response gives the authorities a greater chance of making an arrest.

The dogs, including German Shepherds, are highly trained and skilled in identifying the tracks of poachers and then following them no doubt over long distances when required. The dogs are capable of wrestling a poacher to the ground so that the person involved can be apprehended by a member of the special unit that is called the Paramount Group Anti-Poaching and K9 Academy. Obviously, certain members of the unit are armed as these poachers will do everything that they can to get hold of ivory that is highly valued in certain parts of the world at the expense of killing wildlife.

Let us hope that as many poachers as possible can be caught so that wildlife such as rhinos and elephants can enjoy their lives in the South African bush without being in danger of being killed for their ivory.

If you participate in the likes of skydiving or parachuting then you may be interested to read that here at AIB Insurance we can arrange insurance associated with many types of airsports so why not give us a call on 02380 268 351 and speak with a knowledgeable, friendly member of our team.

Car Manufacturing In The UK Is Booming

Motorists may be interested to read that car manufacturing is doing very nicely here in the UK with the number of new cars built reaching a 10 year high in 2015 when 1,587,677 new cars came off production lines. The £10 billion that has been invested in producing new models and in certain other areas of the industry during the last 5 years would appear to be proving beneficial. Of those vehicles, 1,227,881 (77.3%) were exported.

It is also interesting that this August was the best August for 14 years when it came to the number of new cars manufactured in the UK with 109,004 being built. Of those, 81,200 (74.5%) were exported.

The year-to-date figures to August 2016 reveal that 1,132,727 new cars were built with this being an increase of 12% when compared to the same period last year so it is quite possible that more cars will be built this year than in 2015. Of those cars, 877,523 were exported (77.5%).

As you can see, a very large % of vehicles being built in the UK are exported overseas. Below are the top 10 places that they were transported to last year: –

1. EU Countries 57.3%
2. USA 12.1%
3. China 7.1%
4. Turkey 3.2%
5. Australia 2.5%
6. Japan 2.0%
7. South Korea 1.8%
8. Canada 1.5%
9. Russia 1.1%
10. Israel 1.1%

Within the EU the top 6 countries importing cars built in the UK were Germany, Belgium, Italy, France, Portugal and Spain.

Below are a few interesting facts about the car industry here in the UK: –

a) Demand for electric cars increased by more than 50% in 2015.
b) A new car is built every 16 seconds.
c) The UK has the second largest new car market in Europe with Germany holding the number one position.
d) The UK is the 10th largest manufacturer of new cars in the world.
e) There were 2.63 million new cars sold in the UK with 86.55 of them being imported from other countries.
f) In the region of 2.5 million car engines are built in the UK each year.

The above data was produced by the Society of Motor Manufacturers and Traders (SMMT). If you are interested, you can find out even more information on their website.

Here at AIB Insurance, we pride ourselves on helping our many motoring customers obtain competitive car insurance as well as providing a first class, professional and personal service both pre and after sale. So, if you would like a quotation then why not get in touch with us on 02380 268 351.

The Largest Cruise Ship In The World

There are certainly a number of extremely big cruise ships cruising around the world’s oceans docking at a variety of exotic locations but none larger than the MS Harmony of the Seas. So, let’s have a closer look at this vessel.

Well, it was built in a shipyard in France for Royal Caribbean International who own a number of large cruise liners. It cost over £700 million to build. It was launched in June 2015, started having sea trials in March of this year and made its maiden voyage on the 29th May 2016 from Southampton to Barcelona. The vessel will be cruising in numerous places including the Caribbean and the Mediterranean.

Yes – it is big! In fact, it is just over 1,188 feet in length – that it around four times the length of some football pitches. It is 215 feet wide and 210 feet tall that is equivalent to about seven double decker buses piled one on top of the other.

It weighs 227,000 tonnes yet is capable of cruising at a speed of 22 knots and can use as much as 1,147 gallons of fuel in just one hour so you wouldn’t want to pay the fuel bill. It has four propellers that are each 20 feet in diameter. There are 18 decks with 16 of them available to guests. The 2,747 staterooms, ranging from interior cabins to suites, are capable of accommodating over 6,000 guests. The guests are looked after by more than 2,000 members of crew. There are 15 restaurants that provide a wide selection of international cuisine as well as a variety of cafes and bars with one of the bars moving up and down between 3 decks

There are numerous activities to keep people of all ages happy including a zip line, the tallest helter-skelter on the ocean, a rock wall, mini golf, ice rink, gaming arcade, fitness centre, spa and pools to name but a few. There is a theatre capable of seating 1,300 people. There are numerous places to shop in the promenade.

It will be interesting to see how long it will be before an even bigger cruise liner is built than the MS Harmony of the Seas.

If you are intending to take a cruise, or any holiday for that matter, why not get in touch with us here at AIB Insurance on 02380 268 351 and speak with a friendly member of our staff who will happily arrange a competitive quotation for travel insurance without any obligation.

Cars Once Owned By Royalty To Be Auctioned

If you are a car enthusiast and would like to own a vehicle that was once in the possession of Royalty then you may wish to get along to the Silverstone Auctions NEC Classic Motor Show Sale 2016 that is taking place next month. This is because someone has decided to sell a number of cars that include motor vehicles previously owned by the likes of the Queen, HRH Princess Margaret, Princess Diana, the Qatari Royal Family plus other well-known people such as Sir Elton John and Samantha Cameron (David Cameron’s wife).

One of the vehicles is a Bentley Mulsanne in Barnato Green with a 6,750cc engine that was delivered to the Queen in 2012 and was used to transport her on a number of occasions including when she attended a cabinet meeting at 10 Downing Street. When it was used by the Queen it had various security features fitted including armoured plating and glass but when it ceased to be used by the Queen it was returned to Bentley and these security features were removed. This luxury car is obviously in wonderful condition and has done less than 6,000 miles. It is expected to be sold for between £215,000 to £235,000.

Another of the cars, is a 1980 Rolls-Royce Silver Wraith 11 that was once owned by HRH Princess Margaret. It was painted in Cardinal Red and had a black roof. The interior of the car was fitted out to HRH’s requirements such as the rear seats being higher than normal so that people could see her. One of the occasions that it was used for was to transport members of her family at her private funeral in 2002 following which it was sold. This classic vehicle is in excellent condition and has an estimated price of between £90,000 to £110,000.

Back in 1994, Diana, Princess of Wales took ownership of a new, automatic 2.3-litre Audi Cabriolet. It was painted in Gomera Pearl. She only drove around 4,000 miles in the vehicle before returning it to Audi. It still has a very low mileage for its age at just over 21,000 miles and is in delightful condition. It has an estimate of between £50,000 to £60,000 and perhaps this just shows the impact that someone from the Royal Family having driven the vehicle can have on its value.

Moving away from cars owned by members of the Royal Family, you may wish to consider a white 1972 Fiat 500L that was once bought by David Cameron for his wife Samantha’s birthday. It only had a 499cc engine. Apparently, a taxi driver who returned the Cameron’s to their home in October 2005 noticed the Fiat 500 on their drive and then bought it from them for £1,000. It has been extensively refurbished and has done below 15,000 miles and has an estimate of between £18,000 to £22,000.

You can find more information about the above vehicles and many more on the website of Silverstone Auctions.