From Honset John / Telegraph Motoring, 11th June 2011.

Discussion in 'General Discussion' started by markjay, Jun 19, 2011.

  1. markjay

    markjay MB Master

    Messages:
    25,011
    Joined:
    Jun 24, 2008
    Location:
    London
    Car:
    W204 C180 Executive SE 2013 Automatic / COMAND NTG4.7 and Morel speakers fitted by www.comand.co.uk



    Sand and deliver

    My nephew had his car damaged by a Middle Eastern Gentleman driving a McClaren Mercedes. The incident happened on a Saturday afternoon outside Harrods in Knightsbridge. The MIG reversed into my nephew’s Audi, clipping the wing as my nephew drove past. My nephew stopped, and the MIG left the car and walked into Harrods. The MIG’s flunky was left to deal with my nephew. When my nephew asked for insurance details he was told the MIG does not have car insurance, but he has his own insurance. My nephew was given the address of Coutts Bank and a man’s name to send the car repair bill to. My nephew reported the matter to the police and was told by a senior police officer, that the MIG had in fact posted a bond with Lloyd's of London and was not required to hold conventional motor insurance. The police officer said it was common for very rich foreigners to do this. Have you ever heard of such a thing before? My nephew send a estimate to the bank, as instructed, and the next day a motor cycle courier delivered a package containing the money quoted in the estimate, to my nephew’s home in Surrey.
    BA, Ockley


    Interesting story, with a happy ending. He got paid, and didn't have to involve insurance and therefore won't see his premium rise next year (insurance now rises for any claim regardless of blame). Apparently the cars of footballers of a certain team are owned by overseas companies and somehow insured by an overseas company for the footballers use in the UK. Any camera violation or any when they are not actually stopped (and how do the police stop a 190mph car?) goes to the overseas company and the footballer gets no points.
     
  2. Mercsys

    Mercsys Active Member

    Messages:
    256
    Joined:
    Apr 5, 2011
    Location:
    West London, UK
    Car:
    S350, & E320 CDI Estate Avantgarde
    So it is one rule for us and one for the wealthy!!! :eek:
    And I thought this was England. :doh:
     
  3. SPX

    SPX MB Club Veteran

    Messages:
    16,106
    Joined:
    Aug 29, 2010
    Location:
    Yorkshire
    Car:
    That one
    It is England.

    Hence the 'one rule for us & another rule for them'
     
    6 people like this.
  4. Charles Morgan

    Charles Morgan MB Enthusiast

    Messages:
    8,207
    Joined:
    Feb 2, 2010
    Car:
    Mercedes 250CE W114, Alfa Romeo GT Coupe 3.2 V6
    Lloyds of London last time I looked was a major underwriter of car insurance. Coutts is a registered insurance broker.

    As I discovered recently getting car insurance from normal companies for foreign drivers is extremely difficult. So the driver is insured through Lloyds of London (like numerous others) and pays up when a claim is made. By what thought process can that be considered not possessing motor insurance?
     
  5. Peter DLM

    Peter DLM MB Enthusiast

    Messages:
    2,285
    Joined:
    Aug 24, 2007
    Location:
    Milton Keynes
    Car:
    19 reg CLS 350d, 67 reg AMG GT R Caterham Levante
    If you can demonstrate holdings of £25m (figure may have changed in the last 10 years, pending on Gov's minimum Insurance liability) then you can insure yourself by way of a Surety Bond.
     
    Last edited: Jun 19, 2011
    2 people like this.
  6. MOCAŠ

    MOCAŠ MB Enthusiast

    Messages:
    7,345
    Joined:
    Dec 27, 2008
    Location:
    West London
    Car:
    SLK
    No, the rules are the same for all: you either take out an insurance policy or post a surety of £500,000. AFAIK, this has been the case since the introduction of mandatory motor insurance, and it is only quite recently that the value of the required surety was increased from (I think) £15,000.
     
    1 person likes this.
  7. grober

    grober MB Master

    Messages:
    27,940
    Joined:
    Jun 22, 2003
    Location:
    Perth, Scotland
    Car:
    W204 C200CDI Estate

    While I can believe the insurance arrangement bit I cannot see how that would exempt any driver from prosecution for an offence under the road traffic act. [ exception to this might be diplomatic immunity ] . Because the cars are foreign owned there might be difficulty in identifying the actual driver if the company refused to co-operate. I could also imagine that occasional speeding infringements might be "given the nod" because of this, but one would hope any serious incident involving personal injury to a third party would be pursued with a degree of vigour.:dk:
     
  8. Peter DLM

    Peter DLM MB Enthusiast

    Messages:
    2,285
    Joined:
    Aug 24, 2007
    Location:
    Milton Keynes
    Car:
    19 reg CLS 350d, 67 reg AMG GT R Caterham Levante
    Only 500k? Ok, I was miles out then, not sure where I got the impression it was so much more :eek:
     
  9. MOCAŠ

    MOCAŠ MB Enthusiast

    Messages:
    7,345
    Joined:
    Dec 27, 2008
    Location:
    West London
    Car:
    SLK
    Posted from memory - trying to find corroboration. :)

    EDIT:

    This was the amendment that raised it from £15,000 to £500,000 in the 1991 Road Traffic Act:
    It has not increased since.
     
    Last edited: Jun 19, 2011
    1 person likes this.
  10. SPX

    SPX MB Club Veteran

    Messages:
    16,106
    Joined:
    Aug 29, 2010
    Location:
    Yorkshire
    Car:
    That one
    That's what I mean ^
    They are posting a surety of xyz pounds so they don't need to have car insurance.
    Hence one rule for them & another for us....

    Not that I disagree entirely with the practice, Mocas. On paper, it's a good idea.
     
  11. trapperjohn

    trapperjohn MB Enthusiast

    Messages:
    7,316
    Joined:
    Nov 19, 2008
    Location:
    Lancashire
    Car:
    124 300D 24V Estate
    So how does ANPR deal with this. It must be logged as "insured" I guess.
     
  12. MOCAŠ

    MOCAŠ MB Enthusiast

    Messages:
    7,345
    Joined:
    Dec 27, 2008
    Location:
    West London
    Car:
    SLK
    As Charles Morgan has pointed out, they do need to have car insurance. It's just that they are able to provision it by other means, under the terms of the Road Traffic Act.

    To describe that as there being one law for the rich and one for the poor a bit like complaining that poor people are prevented from buying expensive houses, just because they haven't got enough money... :confused:
     
    5 people like this.
  13. Deadhead

    Deadhead Active Member

    Messages:
    132
    Joined:
    May 11, 2008
    Location:
    Pézenas, France
    Car:
    W205 C200 estate
    A long time ago when I worked for BT, that company used to carry its own insurance for its large fleet of vans and other vehicles. It used to simply pay any claims directly. But that was at the time when large companies did everything in house - training, catering, property maintenance and so on and on. Not the case now of course when functions like training, HR and even core activities are contracted out
     
  14. DrFeelgood

    DrFeelgood MB Enthusiast

    Messages:
    9,277
    Joined:
    Nov 10, 2005
    Car:
    BMW 740Li
    Self insure.

    I thought it was quite common either with bus companies or local authorities.

    I don't see it as 'one rule for them and one for us' really. I'd far rather leave the risk to an insurance company for a (relatively) small annual fee than bankrupt myself in an accident involving substantial personal injury.
     
    Last edited: Jun 19, 2011
  15. SPX

    SPX MB Club Veteran

    Messages:
    16,106
    Joined:
    Aug 29, 2010
    Location:
    Yorkshire
    Car:
    That one
    Sorry, I took it as though they put up a £500k bond as surety instead of 'proper insurance' and if they are at fault in an incident, the cost comes out of the £500k.

    Slighty OT, but in America isn't it the person that is insured and not the car?
     
    Last edited: Jun 19, 2011
  16. IanA2

    IanA2 MB Enthusiast

    Messages:
    4,535
    Joined:
    Sep 17, 2003
    Location:
    East Mids
    Car:
    SL60 AMG, GES300, Lexus GS 430
    It is many many years since I was in Lloyds, but then most large motor organisations eg LT Buses, carried their own insurance insofar as they had to demonstrate to the DoT that they had sufficient funds for TP claims. I don't recall the amount and I don't recall that the amount had to be physically lodged with anyone.

    I imagine Lloyds was mentioned to reassure the chap in the Audi, and more than likely the other chap was a Member of Lloyds, not that that has anything whatsoever to do with anything.
     
  17. renault12ts

    renault12ts MB Club Veteran

    Messages:
    16,122
    Joined:
    Mar 5, 2009
    Car:
    2005 W215 CL500.
    If you have £500,000 you can do it too. What's the problem? Would you rather post the £500,000 or pay your normal premium. The interest lost on the deposit would be greater than the premium..
     
  18. Pontoneer

    Pontoneer Hardcore MB Enthusiast

    Messages:
    13,525
    Joined:
    Aug 19, 2002
    Location:
    Central Scotland
    Car:
    '99 S320 W140 ; '93 300SL-24 R129
    The ability to self insure has always existed - most councils , fire brigades , police forces etc do it .
     
  19. SPX

    SPX MB Club Veteran

    Messages:
    16,106
    Joined:
    Aug 29, 2010
    Location:
    Yorkshire
    Car:
    That one
    My problem is this, is it not the law to have car insurance? As in the kind of insurance that I know?


    I'm not necessarily knocking this practice, on the contrary, I find it intriguing...
     
  20. Charles Morgan

    Charles Morgan MB Enthusiast

    Messages:
    8,207
    Joined:
    Feb 2, 2010
    Car:
    Mercedes 250CE W114, Alfa Romeo GT Coupe 3.2 V6
    It is the law, and a surety is necessary. Most people get their surety from their insurer (note the terms are very closely related) and a few, for whatever reason, post the surety directly, as the law allows.
     
    1 person likes this.

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.