FAQs on insurance
Q2.1 Who are the insurers for the PRS scheme?
- A. The insurers are Ansvar Insurance, a business division of
Ecclesiastical Insurance Office plc. (Until the end of 2010,
Ansvar were a subsidiary of Ecclesiastical; now, as a result
of a restructuring exercise, they are part of Ecclesiastical.)
Q2.2 Why have you chosen Ansvar Insurance?
- A. Ansvar have a strong reputation in the "not-for-profit"
sector - that is, charities and other bodies which do not trade at
a profit. They are ethical insurers, and are approachable, helpful
and efficient. The scheme has been a great success for our
clients and indeed for PRS, since it enables us to offer
high-quality cover at very competitive rates.
Q2.3 Why is the policy called "Charity Connect"?
- A. This is simply a convenient name. Many not-for-profit
organisations are charities. However, many others are not.
Residents' associations and companies responsible for private roads
are not charities. For the purposes of our scheme the Schedule
amends the Policy Document so as to make absolutely clear that it
applies.
Q2.4 How does the scheme work?
- A. Briefly, we are agents for Ansvar, and in carefully-defined
circumstances we have their authority to initiate insurance
contracts on their behalf. When queries arise, we consult the
insurers. Requests for quotations, applications for insurance
cover, and queries about the scheme, should thus be addressed to us
rather than to Ansvar.
Q2.5 How do we apply?
- A. You can use the online form to apply for PRS membership and/or
insurance cover (you can have either or both) or, if you prefer to
fill in a paper form, we can send you one. Just let us
know. Before you apply, please make sure you're familiar with
our Terms
and Conditions, and read our Regulatory information
page.
Q2.6 What if we just want a quotation?
- A. No problem - please use the quick quotation form in the
panel on the right. (Please don't use our online application
form if you just want a quote.)
Q2.7 Which sections of the policy are activated under the PRS
scheme?
- A. Sections 3 ("All risks" - i.e. property damage cover);
8 (public and products liability - i.e. cover against claims
relating to accidents, etc); 10 (property owners' liability) and 20
(legal expenses). In addition we can offer cover under
section 20 (Trustees indemnity) and 7 (employers liability).
Please see our Insurance pages for a fuller
explanation.
Q2.8 What do we have to disclose when we apply for insurance
cover?
- A. An insurance contract is legally a contract "of the utmost
good faith", and a person seeking insurance must make full and fair
disclosure, so that the insurers can assess the risk and decide
whether to accept it, and if so on what terms. Hazards such
as ponds, streams, bridges, and unusual features such as railway
crossings should thus be disclosed. Please feel free to
consult us for guidance if you are not sure.
Q2.9 Does the existence of a hazard mean that the insurers will
be unable to offer cover?
- A. Not at all. They are able to offer cover in most
cases, though they will expect to see sensible steps being taken to
reduce risk, e.g. by fencing a pond which might be a danger to
small children. That said, some features present a problem because
the risk is difficult to quantify. For example, without a
report from an expert it may be impossible to tell how likely an
ancient bridge is to fail when subjected to modern traffic, and
therefore impossible (unless you obtain a report from an expert)
for the insurers to fix a fair premium for accepting the risk.
Q2.10 What about private roads and estates in Scotland and
Northern Ireland?
- A. We can offer cover in such cases, subject to the approval of
the insurers. (However, we don't feel able to offer PRS
membership, since Scotland has its own legal system, and the law in
Northern Ireland may also be somewhat different.)
Q2.11 Our road has a "pumping station", to raise foul water to
the level of the nearest public sewer. Does this matter?
- A. Provided you can say "Yes" to the conditions mentioned in
paragraph 15 of the Statement of Facts form, under the sub-heading
of Statement of Facts, we would expect to be able to offer cover on
standard terms.
Q2.12 Our road doesn't have a hard surface. Does this
matter?
- A. No, except that the excess which applies to claims for third
party damage (typically a motorist who claims that his car has been
damaged by a rut or pot-hole) is increased from £100 to £500. Just
answer "No" on the Statement of Facts form, and let us know in a
separate note that the road is unsurfaced. (But you should
bear in mind that if the surface is so bad that it is positively
hazardous, the insurers would expect action to be taken to reduce
the risk.)
Q2.13 We don't own "our" road - we have tried without success to
trace the owner. Is there any need to insure it?
- A. If you are looking after the road, even though you don't own
it, you may be held legally liable for accidents and other
claims. So there is a risk to be insured against. Insurance
is not a legal requirement, but it's certainly wise - particularly
public liability cover.
Q2.14 Is PRS insurance subject to tax?
- A. Yes, we are obliged to charge IPT (insurance premium
tax). On 4 January 2011 the rate increased from 5% to
6%. The rates quoted on this website and in our literature
include tax.
Q2.15 Should I disclose things like special conditions imposed
in relation to a committee member's personal travel
insurance? They don't seem relevant to insurance for our
road!
- A. Yes, they should be disclosed, though brief details
will suffice in the first instance. We can then confirm with
the insurers that it doesn't affect cover for your road.
Q2.16 Is PRS insurance the cheapest cover available?
- We offer high-quality cover at very competitive rates.
However, if cost is your only criterion, you may find there is a
slight advantage in a policy with lower limits of indemnity.
We believe that it is still possible to find policies with a public
liability limit of £1M; though whether it is wise to buy one
is perhaps a different matter. We suggest that you compare
not just the cost, but the scope of the cover offered, the limits
of indemnity, and the reputation of the insurer, before making a
decision.
Q2.17 Can we insure against our road wearing out?
- Insurance is about risk. Wear and tear is not a risk but
a certainty. So the answer is that insurance cannot help, but
that you should build up funds gradually, over a period of time, to
pay for resurfacing.
Last Updated: 12 October 2011