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The MSA effects Master Insurance Policies only in respect of public liability and personal accident risks and this cover applies to all events held under Permit or for which an exemption is granted. The policies are arranged through Bradstock Insurance Brokers Limited, Manchester and copies of them may be seen on application to the MSA Company Secretary at Motor Sport House.
The following notes in
respect of each of the insured policies are divided into two sections.
Information on the scope of cover and its application in the first section
and an Action Plan explaining how to establish cover correctly and the
claims procedure to be followed in the second section.
Any person injuring another or damaging another's property as a result of acting negligently may have an action for compensation brought against them. This is true just as much in motor sport as in life generally and it is for this reason that the MSA has arranged public liability insurance to protect clubs organising events against this potential legal liability. Insurers cannot cover events of whose existence they do not know and for the policies to be effective a club must obtain an appropriate Permit or Exemption from the MSA.
Scope of Cover
The policy is arranged to provide indemnity to the level stated in Section Z of the Blue Book for any one accident. This is the limit of the lnsurer's obligation no matter how many people are injured or how much property damage is done as a result of a single incident or accident. In respect of pollution/contamination claims the limit of the lnsurer's liability is only £1,000,000 and cover is restricted to sudden, unintended and unexpected pollution.
The costs of defending Clubs against allegations likely to be the subject of indemnity under the policy are also met by Insurers. They will of course take over the control and conduct of that defence.The first £250 of any claim for damage to property will be the responsibility of the club and this excess is payable in respect of each and every accident which gives rise to a claim. Where prior experience indicates that a heavy claims exposure exists the excess may be increased, but not without prior notification to the club concerned.
Who is Protected?
The Master Policy protects an organising or promoting club and its officials for their potential legal liability to third parties injured or whose property is damaged following an accident arising from the holding of an event. This term includes official practice and associated activities necessary to an event (such as setting up a course for a speed event). The cover additionally protects officials (not necessarily officials of an organising club), or sponsors of an event or of races or championships, within the event.What is Protected?
Events arranged by clubs held under Permit or Exemption, and also marshals' training days subject to prior notification and approval.
What is Not Protected?
Events not held under Permit or Certificate of Exemption are not covered neither are any record attempts nor attractions other than the normal competition, such as flying displays or vehicle demonstrations, unless details have been submitted and approval granted by the Insurers. It should be understood that demonstrations and other such attractions are not automatically covered by the MSA Policies, and need to be notified to the Brokers.Approval will normally be given for the demonstration of competition vehicles powered by conventional engines, and with drivers wearing crash helmets, providing the type of vehicle is permitted for competition purposes by the terms of the track licence.
Social events run by clubs are not insured under this policy though Bradstocks will be able to assist clubs requiring legal liability cover for other club activities, or special attractions.
Liabilities arising from the use of vehicles on the public road are not insured under the public liability policy. If this cover is required application should be made to Bradstocks who will be able to offer facilities to insure the exposure.
Events abroad are not covered without special arrangement.
Cover for damage to emergency vehicles is provided although the vehicle owner would have to prove negligence on the part of the organisers or competitors. If cover for emergency vehicles is required irrespective of the issue of negligence or legal liability then special arrangements have to be made in advance and Bradstocks should be consulted over this and the cost.
Are Competitors Covered?
The term competitor is used in its widest sense to describe drivers, entrants, sponsors of individual competitors and where appropriate passengers.It is impractical for the MSA to provide competitors with cover where any part of an event takes place on the public highway in circumstances to which the Road Traffic Act applies. To cover liability under the Road Traffic Act, competitors are expected to make their own arrangements by the extension of existing motor policies. However, Bradstocks are in a position to assist clubs organising rallies through facilities they have in place to provide Road Traffic Act cover.
Where events occur on private land ie where the insurance provisions of the Road Traffic Act do not apply, competitors are protected by the MSA's public liability insurance.
However, this insurance does not protect competitors in respect of liability to mechanics or other helpers forming part of the same entry nor do they protect mechanics, entrants or sponsors in respect of claims by the driver. Claims by one competitor against another actually competing in the same event are excluded. This latter risk is in practical terms uninsurable.Competitors are protected to a degree, against claims from other competitors under the contractual terms under which a competitor obtains this licence, or enters for the event. Under these terms all competitors agree to indemnify other competitors in respect of claims by themselves, though in the light of the Unfair Contract Terms Act 1977 as amended this protection may not be fully effective.
Are Landowners Covered?
The MSA and clubs need to retain the goodwill of landowners in order that land continues to be made available for use by the clubs for events. For this reason the MSA Master Policy indemnifies landowners in respect of their potential legal liability to third parties following an accident in connection with an event for which they have loaned the use of their land. It does not matter whether the landowner is a private individual, a government department or a corporate body. This indemnity is to deal with the risk that an allegation is made after an accident that the cause was due to some defect in the landowner's premises.However, it is possible that damage to the landowner's property may result from an event, for example a wall is knocked down. The MSA Master Policy will indemnify the club against such damage to the landowner's property, subject to the policy excess.
Care should however be taken by the club when using venues part of which are also used for aviation activities, since the MSA Policy does not provide protection in respect of aviation accidents. Bradstocks would be willing to check the landowner's cover is adequate if the club is in any doubt and refers the matter to Bradstocks.
The MSA public liability policy is of course a legal liability policy and will only pay for damage to a landowner's property if it is considered that the club has been in some way at fault and has a legal liability.What is Contractual Liability?
Contractual Liability is the term used in Insurance policies to indicate an obligation accepted by one of the two contracting parties which goes beyond the position that would exist otherwise under the common law.
Insurers exclude such obligations because they do not wish to be bound under their policy by any prior commitment unless they have been given notice of the commitment and agreed to it.
In motor sport it is common for landowners making their land available for a motor sporting event to make it a condition of a club's use of that land that any damage to it will be made good. Thus the liability of the club to the landowner will arise not from common law, because the club is negligent or fails to exercise a proper duty of care, but as a result of the contract between them. Clearly and obviously a contractual liability.
The MSA Master Policy may cover this risk, provided details of the agreement between the club and the landowner are advised to the MSA prior to the event, for approval. Special conditions for the use of land may be embodied in a letter of permission given by the landowner. Under normal circumstances any extension of cover will not include inevitable damage to road and land surfaces. Clubs are expected to take reasonable measures to protect vulnerable property, especially any property of high value which might be subject to damage. It should be understood that the automatic contractual liability, if arranged, operates in connection with the loaning of private land, and not the utilisation of landowner's equipment or personnel.
Prior notification to the MSA is necessary to prevent any possibility of abuse, for example by agreeing after damage has occurred to indemnify the landowner. It is also the case that contractual liabilities can vary considerably in extent and scope and prior submission of details gives insurers the opportunity of assessing whether the risk they are being asked to underwrite justifies additional premium.
If the Insurers agree to provide the cover, the MSA will, on request, issue a certificate confirming the extension of the policies to cover any given contractual liability undertaken.The MSA Master Policy will not provide protection in respect of contractual obligations associated with aviation accidents. Clubs should always clarify the position carefully in any case of aviation activities taking place on the premises.
If obligations are undertaken under contract in respect of damage to other property e.g. hired public address equipment, armco barriers or advertising hoardings then the liability cover offered under the Master Policy will only operate to the extent to which it is judged you may have a legal liability under the common law in negligence.
In order that clubs may be certain
that cover is in place for any given event they are undertaking the following
are the steps that are to be taken:
1.1.2 Consider if specific advice is needed from Bradstocks on the event, e.g.
1.1.3 If special exposures to risks
not covered in the standard MSA liability insurance exist such as in 1.1.2
above then full details should be made available to Bradstocks in good
time for them to respond on the nature of the cover required and its costs.
In the event of any accident involving injury to a spectator or official, or damage to third party property, a full report must be made to the MSA and Bradstock Insurance Brokers Limited as soon as possible. Delay in reporting could result in the lnsurer's refusal to deal with a claim if their position had been prejudiced. In the unlikely event of an injury being fatal, this report must be made by telephone, as it may be necessary to attend the inquest. These requirements also apply to serious or fatal accidents to competitors.
In the case of accidents involving spectators or their property it is important that the names and addresses of any witnesses are obtained and also those of marshals stationed in the vicinity of the accident.
The duties of many officials take them close to the "scene of the action" and consequently into an area of relatively greater danger. However, they voluntarily carry out their duties and legally thereby accept the additional risk inherent in the job which thus limits any remedy at law available to the official should injury occur.
Recognising this the MSA has effected personal accident insurance applying at events held under Permit or Certificate of Exemption. Personal accident policies pay the pre-agreed levels of benefit to persons injured if an accident occurs within the terms of the policy. Such benefits are not dependent in any way on who was responsible for the accident nor is any apportionment of blame required.Who is Covered?
All signed-on officials at events held under Permit or Certificate of Exemption. The signing-on of officials at events is most important in that one of the purposes of this is to identify a person as an official of the event and consequently to establish right to benefit under this personal accident policy.What are the Benefits?
The benefits payable under the personal accident policy are at the discretion of the MSA up to the maxima detailed in the current MSA Blue Book.The reasons why lesser amounts may be payable than the maxima stated in the Blue Book is that it is not permissable to permit an individual to make profit from an insurance claim. The policy necessarily covers a wide range of individuals with very different circumstances and it would obviously be wrong for example to pay £225 per week in temporary total disablement benefit to someone who earns substantially less than this in normal circumstances. The decision as to the benefit level is not in the hands of Insurers but is taken by the MSA after consultation with the club concerned.
In addition to covering officials the MSA has arranged automatic cover for all Competition Licence holders. This personal accident cover is valid from the date of issue of the Competition Licence or the First of January of the relevant licence year, whichever is the later. It is operative during any competition and/or official practice session at an event run under an MSA Permit or run in accordance with the International Sporting Code of the FIA. This additional personal accident cover does not apply to competitors holding only a 'Club Card'.Again the benefits payable are at the discretion of the MSA within the maxima detailed in the Blue Book.
These are the standard benefits provided by the MSA. Facilities exist for licence holders to increase these benefits at favourable terms and they should apply directly to Bradstock Insurance Brokers Limited at Hanover House, Charlotte Street, Manchester Ml 4FD for details of terms.
Who is Covered?
All signed-on Competition Licence holders at events held under Permit or Certificate of Exemption. The cover applies whilst signed-on under Regulation E 5.1 (from 1.1.99) or for any International or National event held in accordance with Article 17 and/or 18 of the FIA International Sporting Code.
The following are general points where experience has shown it is helpful to give guidance to members.3.1 Competitors or Clubs Competing Abroad
It is recommended that competitors or Clubs competing abroad review their insurance arrangements, including medical insurance cover, with Bradstocks.3.2 Foreign Competitors in the UK
The National Health Service has financial restrictions on treating some foreign nationals after an accident. Unless the country of origin has an agreement with the UK foreign competitors are strongly recommended to take out medical insurance before competing here. Organisers should draw this to the attention of foreign competitors in SRs.3.3 Social Events
The MSAs Master Policies only provide protection in respect of events run under Permit or Certificate of Exemption. To cater for potential Legal Liabilities arising from other club activities it is strongly recommended that Public Liability insurance is effected by the club for its own account. Advice on the arrangement of such insurance is available from Bradstocks.3.4 Marshals' Training
Marshals' training days are, subject to prior notification and approval, covered under both the Legal Liability and the Personal Accident (officials) Policies without charge.
3.5 Competitors' Legal Liability
MSA Master Policies do not extend to indemnify competitors taking part in social events or any part of any other event held on the public highway where a Certificate of Insurance is required by law. Entrants and drivers taking part in events of this nature must ensure that their normal Motor Car Policy affords protection.
3.6 Damage to Emergency Vehicles
It is impractical for automatic cover to be provided for accidental damage to Ambulance, Breakdown, Rescue or Doctor's vehicles. The MSNs master legal liability policy covers such damage if the vehicle owner can prove negligence on the part of organisers or competitors. If cover is required irrespective of any ability to prove negligence then Bradstocks should be contacted. It should be said that such vehicles can be expected to be insured by the owners themselves.
3.7 Standard Motor Policies
A Standard Motor Policy issued in the UK market excludes use for "racing, pacemaking, reliability trials, speed testing or rallies". Whilst the competitor may be able to obtain extension of his policy this is a matter for individual negotiation between the competitor and his insurer.Any competitor in any event that involves use of the public highway should, in his own interest, pay particular attention to insurance. He should always, before entering an event involving use on the public highway, obtain confirmation from his insurers that his normal policy operates. Where Rallies or Trials include Autotests full details of these tests should be submitted to the Insurer.
Competitors are reminded of the declaration they are required to make when entering an event. Facilities are available to Clubs to provide short period third party liability cover to drivers in Rallies through the Bradstock Rally Drivers' Scheme.
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