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From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
Proposal for a group motor car insurance scheme for officials using company cars for private mileage.

Identifier  ExFiles\Box 25\4\  Scan170
Date  24th December 1929
  
COPY +67 Sg{Arthur F. Sidgreaves - MD}1/MH{M. Huckerby}24.12.29

Re Motor-Car Insurance - Private Mileage Use

With reference to Sg{Arthur F. Sidgreaves - MD}13/E18.12.29, I have made enquiries to see if premiums would be smaller if a number of Officials took out Third Party Insurance Risks for private mileage with one Insurance Company instead of independently.

At the same time I enquired as to the possibility of the premiums paid by Officials bearing some relation to the extent to which each uses the Company's cars for private mileage during the year.

While the Insurance Company we approached could not submit a scheme based on mileage, it was suggested that the number of days on which each official used a car for private mileage could be taken as a basis for premiums. This necessarily means that even short mileage uses on any day would count as a car-day.

Under the scheme suggested, the premiums would vary from roughly £2. 5. 0. per annum for 25 dar days to £13 per annum for 150 car days.

The usual Premium for Third Party Risks if taken out separately would be roughly £13 per annum for 40/50 HP car so that the above scheme will not help in cases where the yearly private use exceeds say 120 days.

In the event of the above scheme being adopted, a group policy will be taken out based on the estimated number of car days for private use in 1930, of the Officials included in the group, and each official will pay a premium in proportion to his estimated car days for the year.

The Company will have to make a return period-ically to the Insurance Co. of the actual number of days on which cars are used for private mileage, and at the end of the year any official who has exceeded his estimated car days will be required to pay a proportionately increased premium. If his actual number of car days are less than the estimate, he will receive a return of part of the premium he originally paid.

Will all officials who wish to participate in this scheme please let me know without delay, and at the same time let me have an estimate of the number of days on which they expect to use a Company's car for private mileage in 1930, which would not, of course, be binding.

Sg.{Arthur F. Sidgreaves - MD}
  
  


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