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Up2U is a fresh British services provider established by respected lawyers and risk-industry experts. Up2U is works with industry names like Lloyds of London, WNS
Assistance, Avis Group, KPMG, Watson Wyatt and Aon Insurance Services.
Up2U offers service contracts to assist clients who wish to manage their risk through self-insurance. Up2U’s initial product relates to hazards arising from self-insured motoring. Up2U intends in due course to offer services in relation to hazards from accidents
such as motor use and also product (liability), for officers against their liabilities, specific items, buildings, health, for professionals against their liabilities, and for employers.
Self-insurance through the Up2U strategy is a low-cost alternative to conventional
insurance based on carrying less insurance against your liabilities. Your Risk Threshold is similar to insurance with an unusually large excess. Where others cause damage to you, we will recover from them for you, which is a service most insurers don't
offer.
Up2U and its insurers are authorised and regulated by the FSA.
Our products comply with the Road Traffic Act 1988. Up2U’s management is also regulated by several professional bodies, and licensed by the Office of Fair Trading (for Consumer Credit).
Self-insurance is a method of risk-management by which businesses elect to carry a greater part of their commercial risks than is common through conventional insurance products
We publish a separate guide to self-insurance, should
you require more details. In particular the levels of Risk Threshold Up2U allows
far exceed the levels of excess generally available through conventional insurance.
Self-insurance
already exists in the market, but generally only previously accessible to large entities in these forms:
• Captive insurance models operated by most conglomerates (whereby entities such as Sony Corporation insure themselves with an insurer owned by their group, e.g. Sony Corporation Insurance)
• Deposit arrangements exercised by large fleets such as Royal Mail, Exel Logistics, etc.
• Crown and public bodies (armed forces, Emergency Services, and some municipal fleets)
• Insurance by insurers of their own fleets
Self-insurance will always be more efficient than traditional insurance, which also means it should always be cheaper in the medium-term – often far cheaper (see FAQ 7).
Efficiency also has other benefits than cost, including:
• Control - The client becomes the executive, in charge of their risks and in charge of the consequences of their risks
• Service - Up2U will provide superior service in total accord with your on-going direction. This is in contrast to the common experience of being subject to insurer’s whims and demands
• Flexibility - Up2U’s service offerings can be used other than for accidents, e.g. for repairs, breakdowns, recoveries, improvements - even for the supply of hire-cars or new vehicles
• Width Similarly Up2U’s legal offerings could also cover any defence or legal action the client desired, and could also deal with conveyancing, wills, or any other legal service required
• Real Rating clients who are not properly rated by insurers (typically those with complex or unconventional requirements) will be attracted by “real” rating
• Savvy - Up2U is the modern way of managing risk that is the alternative
to insurance’s 13th Century heritage
Since the average claim cycle is 3/4 years (whereas insurance is paid up-front) those who switch to self-insurance will (on average) get one/two years free before they start paying for claims – thus the product will (on average) cause a significant cash-flow benefit - equivalent to a 10% saving (2 x 5% pa interest).
VAT paid on Up2U’s services ought to be a recoverable input, whereas the (5%) IPT charged on insurance premiums is a pure cost to business.
Insurers are constrained to pay a levy of up to c. £50 per vehicle to the MIB in respect of the MIB’s agreement to cover the costs of uninsured motoring.
The lower premiums with Up2U's service give a proportional saving here, too.
Up2U’s claims service will be cheaper than insurance claims handling (on a direct comparison basis) because of waste driven out of the claims process, and the client’s control of the process; Up2U benchmarks its processing services at 18% under average insurance claims costs
Self-insurance also encourages good driving; self-insured drivers have a financial motive to behave responsibly (to reduce their costs). Insurance insulates drivers from the financial penalty of their conduct, offering little incentive against bad driving. Thus the self-insured can expect fewer claims
In self-insurance there is no other business gaining from your commercial risk; you only pay for services you use. In insurance premiums cover the cost of claims - and the insurer’s cut
There’s no way to completely avoid risk; you can only control paying too much to manage it. Your broker will help to gauge the level of risk you can bear - for
example relatively small excesses are already a common part of UK motor fleet practice.
Statistics prove that the chances of a serious motoring incident are much lower than most people fear; for example only about one driver in every thousand will ever live to see themselves cause a road fatality.
Self-insurance is only for the well-informed risk manager. However tens of thousands of vehicles already use this paradigm – including the Army, Post Office, some local councils, many government bodies such as the Forestry Commission, HM Customs & Excise, and many private organisations, too.
Up2U’s service is aimed specifically at easing the transition to self-insurance for a wider range of organisations: we have the experience to make your move painless.
Up2U’s clients will act in the course of their trade. We offer products to Public Sector clients, and for standard Commercial users. The minor differences between the two products reflect the public sector’s relative financial stability and slight legal nuances such as certification requirements.
Although our initial motor product is aimed at the commercial fleet market, that doesn’t mean you have to have a large number of vehicles; if your business fleet is just a few vans, then we’d still love to help you manage it.
Our service for self-insured clients has four basic elements:
• processing risk Objects (cars, people, buildings etc.) (see FAQ 15)
• risk capping mechanism by which you will not be exposed to high-level financial consequences from cataclysmic incidents
• Payment facilities, including credit where required
• regulatory compliance (MIB, Green Cards, Certificates etc.)
In the basic product the Risk-Threshold you select is the level at which you hand-over responsibility to Up2U for damage in individual incidents – comparable with the concept of insurance “excess”. Levels will be pre-agreed, e.g. £10,000 - £100,000 – depending on your status (see FAQ 26). You bear losses you cause below those levels; we pick them up with respect to third parties above them.
As with a comparable conventional insurance premium, the capping charge will increase the lower the risk-threshold you undertake – but at all levels our charges should always be far lower than any comparable conventional insurance premium.
Up2U intends shortly to introduce further similar services in other product-areas, to include accidents, product (liability), for officers against their liabilities, specific items, buildings, health, for professionals against their liabilities, for employers, and other types of risk-management contract.
Once you have one Up2U contract (e.g. for motor) you can add other hazard areas to it as they become available at a volume-discounted rate. The structure of all the products is exactly the same, and you’ll need no new contract.
Up2U provides Clients with the highest commercially feasible quality of service. We offer standard terms intended to be as short as possible, easily readable, simple and clear. They are also much shorter than conventional insurance documentation, for example.
Both Up2U and its insurers are subject to FSA protection to European Union standards. In particular both the Financial Compensation Scheme and the Financial Services Ombudsman Scheme may be applicable.
Up2U intends that the Processing Service will deal with any conventional issue arising from an incident within your Product Area, and includes:
• Recovery – the transfer of a vehicle (e.g. a crashed car) to the place of supply of the other Processing Services (e.g. repair), and its subsequent delivery to any place you elect
• Assessment / Inspection – an expert diagnosis and estimate of required Processing Services for the vehicle
• Repair – Remedial work on the vehicle, generally to restore it to its original condition. Also included within the concept of “Repair” are works of a similar nature that are not necessarily remedial, e.g. fitment of replacement or original equipment
• Replacement – the permanent substitution of the vehicle by an item equivalent to it, and the disposal of the substituted vehicle– e.g. in cases of total destruction.
• Hire - the temporary substitution of the vehicle by an item equivalent to
it, generally during a period of Repair to the vehicle.
• Negotiation – dealing with the management of Processing Services (both for you and with anybody else, where either you or the third party caused the damage) with the intention that all parties interested are not unduly dissatisfied with the overall outcome, but Up2U’s priority being your satisfaction
• Legal - dealing with any necessary formal law processes that relate to Negotiation, including defending you from claims brought against you by anybody else and bring claims against anybody else on your behalf.
One of the benefits of Up2U’s products is that they are available not just if you are involved in an incident, but in any relevant circumstance you care to use them, for example for breakdown recovery, regular repairs, diagnostics and maintenance, improvements etc.
Up2U’s Processing Service may be supplied either (or both) to yourself and/or to anybody else to whom you wish to provide them.
Generally you have the option whether or not to request Up2U’s Processing Service - unless anybody else suffers a loss for which you are responsible, when
you must use Up2U to provide Processing Services to them for recovery from their loss, or if your claim is over your threshold.
Again you have the option whether or not to request Up2U’s legal service unless anybody else suffers a loss for which you are responsible, when you must
use Up2U to deal with their loss, or if your claim is over your threshold.
When you do use Up2U’s legal service Up2U is “subrogated” to your claim – this is a legal concept that means we partly “stand in your shoes” for the purpose of your claim. You an Up2U must work in conjunction on the claim; for example you agree to appoint Up2U’s solicitors to represent you and any recoveries shall be passed through Up2U’s payment process.
On commencement Up2U will issue you with a Statutory Certificate, and will also enter your details on the Motor Insurance Database – which means the police computer will show you are Road Legal®. The police are aware of the system and have no reason to treat you any differently to any other motorist.
Again on commencement Up2U will issue you with a Statutory Certificate that satisfies the Post Office’s requirements. The Post Office are fully aware of the system and should treat you the same as any other motorist.
When you set up your Up2U portfolio we will charge a modest, published charge covering the costs of setting up your details on our systems (your "Up2U Account"
and Management Console), issuing you with documentation (guides, certificates etc.),
informing the Motor Insurers Database, and your capping mechanism for the first year. The more vehicle you have, the less you pay prorata.
We publish a separate Price Guide (that may be revised from time to time).
All these charges will appear in your Up2U Account for payment at your convenience (see FAQ 24)
If you have no accidents, then that will be all you pay unless you make any changes (for which there is a small administrative fee) during your first year, after which a further charge will arise your capping mechanism for your second year – and so on; the product being structured on a continuous basis.
If you do use the processing service (for example, if you elect to do so, or if you are involved in an incident and chose to do so, or must do so because a third party is involved) then a processing fee will be charged on the cost of the service undertaken or the recovery or payment made, at a published rate depending on the circumstances.
Fees will only appear in your Up2U Account once you have agreed them for services which have actually commenced. Normally you will have 30 calendar days from that date to pay our invoice.
Sometimes we may agree that you should make payments more quickly than that (e.g. to enable a settlement in a claim of yours).
If you want to make payment more slowly (e.g. for a large payment near your Risk-Threshold), then credit terms should be available (see FAQ 25)
We will normally offer up to 3 months Business Credit at a modest rate of 1% per month, with three equal payments, subject to status.
If Consumer credit arises in your circumstances (e.g. for clients that are unincorporated) then Up2U may enter into an equivalent regulated Consumer Credit Agreement, subject to status. Please ask for written details.
It is important to Up2U that you would be able to bear the consequences of your maximum risk should the worst occur, because you are undertaking your risks below your Risk-Threshold. The assurance we look for is that our client’s business contain enough “equity” to ensure that you could pay for the worst without undue disruption to your business. “Equity” is latent value in the business such as assets, turnover, external backing, finance etc.
Although we will undertake some checks of our own we largely rely on an initial and on-going assurance from our clients as to their own status. We offer the highest possible level of service, and we hope to do so to the best possible quality of client.
We can agree a contract down any conventional sales channel –
see FAQ 29. The Contract will exist from the moment it is agreed until it is terminated; it will not expire due to the passage of time or the occurrence of any incidents.
Either party may serve 30 days notice of voluntary termination (without fault) at any time. If Up2U serves notice of voluntary termination then Up2U shall refund any fee you have actually paid for the capping-mechanism and administration charges for any un-expired period remaining. If you serve notice of voluntary termination then you shall be entitled to no refund of fees, although up2U would normally expect to make a pro rata return of unused charges.
You can apply for an Up2U contract:
• On Paper. Paper application forms can be obtained from our
o tele-service 0845 453 4881
o e-mail request to fleetinfo@Up2Ugroup.com
o fax request to 0161 439 4207
o by post - please write to Up2U Fleet, 19-21 Ack Lane East, Bramhall, Stockport, SK7 2BE.
and should be returned by post, e-mail or by fax (same details)
• By Telephone – please call our tele-service on 0845 453 4881
• In person - if you are located near our offices, feel free to come in and see us: 19-21 Ack Lane East, Bramhall, Stockport, SK7 2BE
Part of providing the highest quality of service is keeping you informed of what is going on, and making sure we have ready access to your direction. Therefore, unlike most insurance companies, we will want to keep in close contact, particularly during the processing service.
We will give you special access to a series of communication portals, including
• Telephone
• internet
• e-mails
• SMS
• Fax
• Post
• In person (should you wish to attend at any of our premises)
Correspondingly we will look for direct links into your management through similar channels.
Not normally in the end. As with traditional insurance, if someone else damages your vehicle normally their insurance company will pay for your vehicle to be repaired. However if we pay for your vehicle to be repaired first, and then claim off them for you, you will have to bear the cost until the recovery is made (which could take some months).
If you wish to apply for processing services following an incident (or even without an incident having occurred), simply call our fleet processing department on 0845 453 4882 and our operators will guide you through the process.
Once you have informed us of a claim, you will be contacted with details of the costs, allowing you to authorise them, and you can monitor your claims online. Up2U makes use of state of the art systems and priority national service contractors to keep your costs at a minimum.
It’s Up2U! As part of our repairs service we can provide courtesy cars or specialist vehicles quickly, to ensure you are not inconvenienced, and if someone else damages your vehicle, we’ll ensure you get a like-for-like replacement at their expense.
Up2U has a resolution procedure in place to ensure that any problems you may have are dealt with swiftly and efficiently. If you have any problems give us a call on 0845 453 4883 or email us at resolution@up2ugroup.com.
You only pay a small administrative charge for changes made to vehicles or drivers on your contract. Additional vehicles and drivers (or changes into a different class) will incur a further capping charge at the same low rate as the rest of your fleet, pro rata the period.
Almost. The normal standard charges apply to normal business use of “normal” vehicles (i.e. cars, vans, light goods vehicles, motorcycles etc.), but we also deal with “special” vehicles (see FAQ 38).
Goods vehicles, public service vehicles (Buses), and vehicles of unusual risk, e.g. those carrying hazardous materials.
The main criteria for the capping charge is the Risk-Threshold you chose, though heavy users and/or “special” vehicles and drivers will pay more.
Taxi drivers, couriers, hauliers and delivery services (making deliveries for others, for charge) and car hire.
Please contact us to discuss special discounts available, for example, undertakers or wedding-car services.
Provided the trade plate is used in relation to the category of vehicle you have declared there is no special requirement: the only important point for Up2U is that the vehicle is properly identified.
Vehicles should be based in the United Kingdom, and driven on British roads for the majority of their time. However you may drive in the European Union without any further requirement. If you would like a “Green Card” please see “Other Foreign Motoring”.
Please note that our recovery service is UK based, so European recovery may take longer than it would in the UK.
Vehicles should be based in the United Kingdom, and driven on British roads for the majority of their time. They should not be driven outside the EU with our prior consent. We can issue you with a “Green Card”, for which there will be a small charge.
Our recovery service is UK based, so a recovery abroad may take longer than it would in the UK.
Up2U covers standard business drivers; other drivers will be considered on a case-by-case basis on application.
An over-21 driver, whose licence is endorsed with no conviction other than for speeding, without medical condition adversely affecting their driving.
Brokers are an important sales channel for Up2U, so we offer a special package for brokers to adopt our products for sale to their customers, including the opportunity for negotiating attractive incentives from clients. If you are a broker interested in selling Up2U’s products, then please log on to www.Up2Ubrokers.com, telephone 0845 453 4880, or write to Up2U Brokers, 19-21 Ack Lane East, Bramhall, Stockport, SK7 2BE.
Up2U’s products are available direct to the client at the same overall cost as through a broker. If you wish to buy Up2U’s services and have a broker who deals with our product, we would encourage you to speak with your broker. However if you have no broker, or your broker does not offer Up2U, then please log on to www.Up2Ugroup.com, telephone 0845 453 4881, or write to Up2U Fleet, 19-21 Ack Lane East, Bramhall, Stockport, SK7 2BE.
If you lease vehicles they will either be made Road Legal™ by your lease company, or you will be obliged under your lease to cover them yourselves.
If your lease specifies you have to insure the vehicles then self-insurance should satisfy that requirement; however we recommend you notify us before contacting your lease company to check their attitude, as we may already be aware of your lease company’s approach to self-insurance.
If you are a lease company, then self-insurance is the ideal method of reducing costs provided your lease terms pass-on the costs to your clients. Please contact us to discuss special options we maintain particularly in your market.
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