Legal Wizard

Insurance

Insurance policy
A legally binding agreement between you and the insurer. In return for the "premium", you receive cover on the basis set out in the policy (including the small print).

Insurance proposal
You owe a duty of good faith towards the insurer. You must disclose to them anything which may reasonably affect their decision as to whether you are a "good risk". Thus all relevant motoring convictions are important. The duty of disclosure is ongoing – not just when you take out the policy or when you renew.

Insurance cover

	Third party – the basic legal requirement – covers you if you damage others. You are not covered for damage to yourself/your bike.
	Third Party Fire & Theft – damage to your own bike through fire or loss through theft are additionally covered.
	Comprehensive – Covers all the above + damage to your own bike by another – whoever was at fault. NB: Accessories (top boxes/tool rolls etc) are not generally covered under any type of insurance unless you specifically pay an extra premium.

Excess: Here you agree (in return for a reduced premium) to bear the first �50/�150/�250 or whatever, yourself.

Cover note: The provisional and temporary document you receive when you first insure. The cover may not be as extensive as the full policy.

The policy: The document setting out exactly what you are covered for. Reading and understanding the small print is vital.

Insurance certificate: The short document required for legal purposes – eg production to police/when you tax your bike etc.

Social, domestic and pleasure: The most usual extent of your cover. You are not covered for using your bike for work – but you are for going to and from work. Despatch riders therefore need extra cover.

Riding restrictions: You need to be clear (from the small print) who can/cannot ride or be a pillion passenger. If you are permitted to lend your bike to someone else any comprehensive cover you may have, may reduce to third party only. If you do not check that the lender is covered for insurance, you yourself can be guilty of "permitting" the other to use without insurance.

Rider policy: A policy (now sadly rare) which entitles you to ride a range of non-specific bikes. Thus you could own 6 – but only use one at a time. The insurer did not need to know which one. This excellent arrangement was sadly abused and therefore gradually withdrawn by and large.

Reporting requirements: You must tell your insurers promptly (and within the time limit laid down) if:

	You change your Bike.
	You have an accident.
	You are convicted for a relevant offence.
	Anything happens that requires reporting under the policy.
	If you "adapt" the bike.
	Failure to report can result in dire consequences.
	Don't just rely on telephone reporting. Commit it to writing.

Carrying documents: No legal requirements here. But desirable to do so (in a waterproof container – may avoid a "producer" HORT1).

Private land: Your insurance covers you whilst on a public road. Trespassing on private land is not covered.