Total Loss Cover

Return to Invoice and Finance

Gap Insurance

Module Objective

By the end of this module you will be able to complete an online assessment

which demonstrate your:

Knowledge of Total Loss Cover – Return to Invoice & Finance Gap Insurance

Competence in presenting Total Loss Cover – Return to Invoice & Finance

Gap Insurance

Contents

What is a Total Loss

What is Covered

What is NOT Covered

Benefits to the policyholder

Eligibility

Administration Procedure

Claims Procedure

Complaints Procedures

Policy Transfer

Cancellation Procedures

Insurer & Administrator

Next Steps

What is a Total Loss

A total loss is the description given when a motor insurer determines that a

policyholders vehicle cannot be repaired or recovered declares the insured vehicle to

be a total loss

This can be as a result of;

Accidental or malicious damage

Fire

Flood

Theft

The insurer will asses a claim and decide it is “uneconomical to repair or replace”

the insured vehicle

At this point the vehicle will be declared a total loss

What is Covered

In the event of a total loss as a result of accident, fire, flood or theft, this policy will pay the difference between the Insured Value* and the greater of the Purchase Price** or the Finance Company Settlement up to the limits of the policy.

*Insured Value is the greater of Glass’s Guide Transacted Value or the Motor Insurer Settlement

**Purchase Price is the amount paid to purchase the vehicle, including any manufacturer fitted accessories, excluding:

Any discount and/or contribution, dealer fitted accessories, road fund license, delivery

charges, number plates, new vehicle registration fee, administration fees in excess of £95,

fuel, paintwork and/or upholstery protection kits and cherished number plate transfers;

and

Insurance premiums (including for this policy), subscription charges or warranty charges;

and

Negative Equity, arrangement fees, arrears, interest on late payments; and

Any VAT, if You are VAT registered and able to reclaim the VAT element; and

Any other costs or associated fees.

What is Covered

The policy will also pay towards the policyholders motor insurance excess where

this cannot be recovered from a 3rd party, the amount covered is

£250 for volume dealers / £450 for premium dealers / £500 for specialist

dealers

The policyholder is entitled to a replacement vehicle for up to thirty (30) days

The replacement vehicle will be up to a maximum of 2000cc and could be of

any make or model available at the time

The replacement vehicle is fully insured for use by the policyholder

After the initial 30 (thirty) days cover, the policyholder can continue to use the

replacement vehicle at their own expense

What is Covered – Policy & Claim Limits

The maximum benefit of the policy is up to the amount paid for the vehicle or

£50,000, whichever is the greater

The maximum excess covered is £250 for volume dealers / £450 for premium

dealers / £500 for specialist dealers

The temporary replacement vehicle is provided for 30 days and the policyholder

is the only individual eligible for a temporary replacement vehicle

Period of cover for the policy is a maximum of 36 months from the start date

Where the policyholder has a finance agreement that runs beyond the 36 months,

the Finance Gap will also run beyond the 36 months of cover, to the full term of

the finance agreement, up to a maximum of 60 months from the policy start date

The need for Finance Gap is reduced after the 36 months due to the reducing

balance of the finance and the depreciation of the vehicle, so this cover is

provided at no additional cost

What is Not Covered

If the person driving the vehicle at the time of loss is driving;

Without a valid licence; or

Under the influence of alcohol or drugs; or

Whilst disqualified

Where the vehicle or driver is not covered by comprehensive motor insurance at

the time of loss

Where the vehicle is covered by a motor trader policy

Negative equity

Where the motor insurer offers to repair the vehicle and the policyholder

requests the vehicle is deemed a total loss

Any deductions by the motor insurer for any damage not associated with the

total loss claim

What is Not Covered

Any loss caused as a result of theft by a person known to the policyholder who

has access to the keys

Any contribution towards the temporary replacement vehicle;

Prior to the motor insurer confirmation of total loss; or

After the GAP claim is paid or the vehicle replaced; or

For more than 30 days

Any additional costs or charges incurred by the policyholder for the temporary

replacement vehicle, including, but not limited to, the cost of any upfront fees,

deposits, excess mileage charges, toll fees and fares, fines, fuel costs, and any

excess in the event of a claim arising out of an accident involving the vehicle

hired

Where the policyholder is entitled to a temporary replacement vehicle under

their Motor Insurance policy or under any other policy or from a third party

Benefits to the Policyholder

The benefits of TLC are;

Ensures the policyholder can buy a new vehicle of similar age, mileage and cost to

their original vehicle

The policyholder is covered up to the value of the vehicle or a maximum of £50,000

The policyholder is also protected against loss of the motor insurance excess where

they cannot recover the excess from a 3rd party, we will cover this up to the limits

advised

Keeps the policyholder mobile for up to 30 days whilst sourcing a replacement

vehicle

The replacement vehicle is fully insured for the use of the policyholder

The policyholder can extend this at the same discounted rate if they wish

Eligibility

To be eligible for TLC the policyholder will be;

Covered by comprehensive motor insurance throughout the term of the policy

either, in their name or they are a named driver under the motor insurance policy;

and

18 years of age; and

Either an individual or company living or registered in the UK, Channel Islands or

Isle of Man

To be eligible for TLC the vehicle will;

Be a private car; and

NOT be a commercial vehicle, emergency vehicle, taxi, bus, truck, motorcycle; and

NOT be used for hire or reward, dispatch, driving schools, road-racing, rallying,

pace making, speed testing or any other competitive event

Administration Procedure

At the point of delivery:

Print the Policy Schedule and Policy Document and give these to the policyholder

The policy will be submitted to Premia Solutions once vehicle status is set to

‘Delivered’ on Showroom

Claims Procedure

The policyholder will need to submit a claim to Premia Solutions:

They must notify Premia Solutions as soon as they are aware that the vehicle is a

potential total loss and before they accept an offer from the motor insurer

Premia Solutions will call the policyholder to explain the claims process and

confirm the policy cover and provide full details of the next steps of the claim

process

The policyholder will need to complete a claim form and submit this

The information must be submitted within 30 days of the date of loss

Premia Solutions will assess the claim once the fully completed claim form has

been provided

If the motor insurer replaces the vehicle, the policyholder will need to advise

Premia Solutions within 24 hours

Complaints Procedures

In the first instance you will need to establish the nature of the complaint that the

policyholder wishes to make

If the complaint relates to the sale of the policy, the policyholder should follow

the process detailed on the following slides

If the complaint relates to the administration of the policy or the claims process

the policyholder should contact Premia Solutions who will handle the complaint

on behalf of the insurer

Should the policyholder still be dissatisfied, they can ask the Financial

Ombudsman Service to review their case

Contact details for Premia Solutions and the Financial Ombudsman Service can be

found in the Policy Document

Complaints Procedures

What to do if you receive a Regulated Complaint

Where a customer makes a regulated complaint directly to you, you should:

Apologise and provide reassurance that we have a dedicated complaints handling team that will investigate their complaint

Take full details from the customer relating to their complaint

Always provide the customer with a copy of our complaints handling process available on the website and take them through the process

Email the complaint to the F&I Complaints Team with details of the;

Customer name / address / car registration

Details of the complaint / selling dealer / full deal file and finance agreement

Once you have escalated the complaint, the dedicated complaints handling team will acknowledge and investigate the complaint

Complaints Procedures

If the customer contacts you directly for the progress of their complaint

contact the F&I Complaints Team who will respond to the customer with an

update

All Regulated Complaints must be logged. This is so that Lookers can comply with our

regulatory obligations (which includes reporting on numbers and types of complaints

to our regulators, the FCA and CBI), underlying patterns can be identified and

addressed, and we respond transparently, effectively and promptly to all customer

complaints.

Staff should not:

Try to handle the complaint. The dedicated F&I Complaints Team in Manchester

Head Office must handle the complaint using these processes

Policy Transfer

The policyholder may transfer their policy within the first 90 days to a family

member

To do so they they will need to contact Premia Solutions who will arrange the

transfer

The transfer can only be to a family member and that person must meet the

Eligibility criteria

The policy may also be transferred where the policyholder is entitled to, or offered

a replacement vehicle, under the terms of their motor insurance

To process the transfer they will need to contact Premia Solutions who will

arrange this

Full details can be found in the Policy Document

Cancellation ProcedurePROVIDING a claim has NOT been paid, the policyholder may cancel their policy

throughout the 36 month period of cover and receive a refund of premium

In the first 30 days, the policyholder will receive a full refund of premium

In order to cancel the policyholder should contact the selling dealer who will

provide the policyholder with a full refund of the premium paid

The dealer will then confirm the cancellation to Premia Solutions

Cancellation Procedure After the first 30 days the policyholder will receive a pro-rata rebate for each whole

unexpired month of cover

The policyholder must contact Premia Solutions who will process the cancellation

and confirm the refund due

There is a £50 Administration Fee charged for any refund after the initial 30 days

The policyholder can cancel after a claim has been paid, but will not receive a

refund of premium.

After the 36 months of cover there is no refund or premium

Full details can be found in the Policy Document

Insurer & Administrator

Insurer

Fortegra Europe Insurance Company is authorised and regulated by the

Prudential Regulatory Authority and the Financial Conduct Authority

Fortegra has international A-rating status

Provides a range of insurance products to the motor dealer market

Administrator

Premia Solutions are authorised and regulated by the Financial Conduct

Authority

Has 20 years experience UK automotive insurance market

Administer claims for TLC and MDP+

Next Steps…

You now have two choices, you may either:

If you are totally prepared and confident that you have fully understood this

module, you may now move forward and sit the online test by clicking here

and logging in

If you are not 100% prepared and do not feel ready to sit the online

assessment you should return to the beginning of this module and complete

your preparation