MCE advises BIBA on misfuelling insurance claims

MCE advises BIBA on misfuelling insurance claims

The British Insurance Brokers' Association (BIBA) is warning that diesel drivers are most at risk of misfuelling, which could cost more than £5000 to repair and is not covered by nearly a third of insurance policies.

BIBA has highlighted that of the 150,000 misfuelling cases per year, 95 per cent are people putting petrol into diesel vehicles due to the wider diesel filler neck and narrower unleaded nozzle. A BIBA survey of the major UK insurers reveals that 30% would not pay a misfuelling claim.

Graeme Trudgill, BIBA Technical and Corporate Affairs Executive, said: "Nobody is immune to misfueling, from TV celebrities like Philip Schofield to Wayne Rooney's reported misfuelling mishap, it is easily done. Even the Metropolitan police have spent nearly £280,000 repairing vehicles filled with the wrong fuel since mid 2006. It is important to speak to your insurance broker to arrange a fully comprehensive policy that covers these unexpected risks."

BIBA advises that in the event of misfuelling the motorist should not start the vehicle and ought to notify the petrol station and breakdown company immediately. The possibility exists that an insurer may refuse to pay out in the case of a motorist who knowingly drives their vehicle with the wrong fuel in it because the policyholder may be deemed to have failed in their duty of care.

BIBA insurance broker, Michael Edwards from MCE, commented: "Misfuelling often occurs on a Monday morning and Friday evening when drivers are preoccupied thinking about the week ahead or rushing home for the weekend. If the motorist is innocent the insurance industry would normally treat this as an accidental damage claim, under a comprehensive insurance policy. However, if the policy is third party, fire and theft or contains a misfuelling exclusion, then the motorist is unlikely to be able to claim at all.

Edwards added: "We have also experienced motorcycle misfuelling where the rider has been driving a company van or car during the week and then fuels his motorcycle for leisure activities at the weekend. Riders should speak to their Insurance broker as 57% of motorcycle insurance policies don't cover misfuelling."

Motorists have the right to complain to the Financial Ombudsman Service, if the exclusion was not brought to their attention at the point of sale. Where there is any doubt, an insurance broker is best placed to represent the policyholder on the policyholder's behalf.

The cost of repairs can range from £300 for a fuel drain, to over £5,000 if the car is driven causing serious damage to the engine. BIBA is urging consumers to purchase an adequate motor insurance policy from an insurance broker which protects against such an event and not buy solely on price alone.

Case study:

Gurmukh Shehri, 26, an Accounts Manager, borrowed his brother's diesel car to drive his wife to the airport, but ended up not being able to start the car at all after filling it up with Petrol. He says his brain was somewhere else when filling up after a stressful and long motorway drive.

"I put in about £30 worth - half a tank - of petrol and drove back from Stansted to west London, without realising there was anything wrong. The car felt like it was losing power and was shuddering a bit, but I didn't think it was anything serious.

When Shehri later tried to start the car, the engine would not come to life "it was only then that I realised what I had done. It suddenly dawned on me that I'd filled the diesel car with petrol.

Shehri's insurer said that the car was not covered for misfuelling, while the manufacturer's breakdown assistance service, said that it would cost at least £1,000 to pick the vehicle up and take it to a garage as it was the weekend.

A local garage agreed to flush the car's fuel tank out for £150 the following day; Shehri was told he had been lucky there was not more damage done to the engine, considering that he driven it on petrol for some time.