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Car insurance is cheaper abroad
April 2009
Two large leasing companies offering long-term rental, insure their clients’ cars in their own insurance companies, which are established especially for that purpose only. They are established abroad.
As published in "Gazeta Prawna" (Law Gazette) by Marcin Jaworski, Arval is another CFM company, which offer includes comprehensive car insurance in the self-founded company Greenwal Insurance. The very first one was Leaseplan that two years ago made the same move and founded Euro Insurances. Since Poland became EU member, Polish customers have an opportunity to purchase car insurance in 511 foreign insurance companies, which showed the interest in Polish market. Local companies are their brokers only.
- Unique solution is establishing an independent company, Fleet Insurance Services, which also liquidates losses from comprehensive policies (AC and NNW) - says Ernie Greszta, Insurance Manager Arval.
Both mentioned companies were established in Ireland. Such location gives their customers better protection in case of insurance company bankruptcy. Irish equivalent to our Insurance Guarantee Fund (IGF) guarantees covering 100% of payments, including those outside the Republic of Ireland. In comparison with Poland, IGF does not guarantee any payments from the voluntary policy. Therefore choice of the insurance company is completely at the customer’s risk. Fully protected are only those, whose losses are covered from third party liability.
A slightly different model of cooperation with the foreign insurance company exists in ALD Automotive
- Our company established reassurance company ALD RE that in Poland cooperates with AIG Polska as the insurer, and PolAssistance is an agent that makes contracts and manages claim settlements - says Janusz Pawłowski Coordinator of Insurance Department ALD.
In that way, his company offers full range of insurance (OC, AC and NNW). Those, who insure vehicles in their own insurance companies, cannot offer it.
- We launched this model of cooperation last year in August and so far about 50% of the car fleet we manage has such insurance policies, that is about 2,500 vehicles - says Janusz Pawłowski.
Our target is to be more of them for from company’s point of view it is important to convince clients that offer is very profitable, as bigger scale means more profits. In comparison, Euro Insurances covers about 85% of LeasePlan car fleet, that is 8,500 vehicles. Other companies’ vehicles insurance is not a part of LeasePlan fleet management service. If we take into consideration the whole LeasePlan fleet (their own and managed only vehicles), percentage of cars insured by Euro Insurances will reach 70%.
- 80% out of 10,000 vehicles we manage is insured by our agency and then again 80% of them will have Greenwal insurance policy - says Ernie Greszta.
NOWOŚCI W AC ZAGRANICZNYCH TOWARZYSTW
Insuring the car fleets within the own insurance company guarantee what follows:
• compensation payment when the vehicle is stolen, even if the owner has no full set of keys
• compensation payment after the accident, even if the date of annual test of automobile safety, roadworthiness aspects and exhaust emissions has exceeded for more than 30 days
• full compensation of spare parts used for a repair, including those fast rotating parts as tyres, batteries, etc.
• protecting coinsurance for a replacement car that is rented for the time of repair (applied by companies that rent such cars)
• calculation of compensation from the vehicle book value; that makes the problem of underpayments, when compensating the total damage, exists no longer
* presenting own insurance offers of Arval and LeasePlan in comparison to the standard offers of comprehensive insurance in Poland
MARCIN JAWORSKI
marcin.jaworski@infor.pl
OPINION
JAROSŁAW ADAMKIEWICZ
LeasePlan Fleet Management
There is no legal possibility of increasing range of own insurance by vehicle third party liability policy. Vehicles insured by our company Euro Insurances are the subject of leasing or long-term rental, but owned by LeasePlan. However, Polish legislation has not anticipated a situation, when someone issues the policy of the third party liability for himself. Therefore, each insurance company is forced to use the services of other companies, when third party liability is considered. The law of the particular country regulates that issue. For example, in Benelux countries, there are no such limits in that matter.
Source: Gazeta Prawna
Two large leasing companies offering long-term rental, insure their clients’ cars in their own insurance companies, which are established especially for that purpose only. They are established abroad.
As published in "Gazeta Prawna" (Law Gazette) by Marcin Jaworski, Arval is another CFM company, which offer includes comprehensive car insurance in the self-founded company Greenwal Insurance. The very first one was Leaseplan that two years ago made the same move and founded Euro Insurances. Since Poland became EU member, Polish customers have an opportunity to purchase car insurance in 511 foreign insurance companies, which showed the interest in Polish market. Local companies are their brokers only.
- Unique solution is establishing an independent company, Fleet Insurance Services, which also liquidates losses from comprehensive policies (AC and NNW) - says Ernie Greszta, Insurance Manager Arval.
Both mentioned companies were established in Ireland. Such location gives their customers better protection in case of insurance company bankruptcy. Irish equivalent to our Insurance Guarantee Fund (IGF) guarantees covering 100% of payments, including those outside the Republic of Ireland. In comparison with Poland, IGF does not guarantee any payments from the voluntary policy. Therefore choice of the insurance company is completely at the customer’s risk. Fully protected are only those, whose losses are covered from third party liability.
A slightly different model of cooperation with the foreign insurance company exists in ALD Automotive
- Our company established reassurance company ALD RE that in Poland cooperates with AIG Polska as the insurer, and PolAssistance is an agent that makes contracts and manages claim settlements - says Janusz Pawłowski Coordinator of Insurance Department ALD.
In that way, his company offers full range of insurance (OC, AC and NNW). Those, who insure vehicles in their own insurance companies, cannot offer it.
- We launched this model of cooperation last year in August and so far about 50% of the car fleet we manage has such insurance policies, that is about 2,500 vehicles - says Janusz Pawłowski.
Our target is to be more of them for from company’s point of view it is important to convince clients that offer is very profitable, as bigger scale means more profits. In comparison, Euro Insurances covers about 85% of LeasePlan car fleet, that is 8,500 vehicles. Other companies’ vehicles insurance is not a part of LeasePlan fleet management service. If we take into consideration the whole LeasePlan fleet (their own and managed only vehicles), percentage of cars insured by Euro Insurances will reach 70%.
- 80% out of 10,000 vehicles we manage is insured by our agency and then again 80% of them will have Greenwal insurance policy - says Ernie Greszta.
NOWOŚCI W AC ZAGRANICZNYCH TOWARZYSTW
Insuring the car fleets within the own insurance company guarantee what follows:
• compensation payment when the vehicle is stolen, even if the owner has no full set of keys
• compensation payment after the accident, even if the date of annual test of automobile safety, roadworthiness aspects and exhaust emissions has exceeded for more than 30 days
• full compensation of spare parts used for a repair, including those fast rotating parts as tyres, batteries, etc.
• protecting coinsurance for a replacement car that is rented for the time of repair (applied by companies that rent such cars)
• calculation of compensation from the vehicle book value; that makes the problem of underpayments, when compensating the total damage, exists no longer
* presenting own insurance offers of Arval and LeasePlan in comparison to the standard offers of comprehensive insurance in Poland
MARCIN JAWORSKI
marcin.jaworski@infor.pl
OPINION
JAROSŁAW ADAMKIEWICZ
LeasePlan Fleet Management
There is no legal possibility of increasing range of own insurance by vehicle third party liability policy. Vehicles insured by our company Euro Insurances are the subject of leasing or long-term rental, but owned by LeasePlan. However, Polish legislation has not anticipated a situation, when someone issues the policy of the third party liability for himself. Therefore, each insurance company is forced to use the services of other companies, when third party liability is considered. The law of the particular country regulates that issue. For example, in Benelux countries, there are no such limits in that matter.Source: Gazeta Prawna