CPA Bulletin

Keeping a vehicle without insurance (that hasn’t been declared off-the- road) is an offence that was introduced in 2011. The Continuous Insurance Enforcement (CIE) legislation means that you must either insure your vehicle or, if it is not on the public road, declare it as off-the-road using a Statutory Off-Road Notice (SORN). If your vehicle is seen on the public highway (even when parked up outside your house), and appears to be uninsured because it is not listed on the Motor Insurance Database (MID) and not the subject of a SORN, you will be sent an Insurance Advisory Letter (IAL). If you receive an advisory letter and take no action then the penalties can be severe. [For your information - The Motor Insurers’ Bureau/Police Helpline is used by police officers to identify the insurance status of a vehicle when roadside with a driver. If the insurance policy is found to be invalid or non-existent, the police officer can immediately seize the vehicle and the driver can face further penalties.] Whilst every care has been taken to ensure the accuracy of the answers given within this section of the Bulletin, no liability for any damage, liability, cost, loss and/or expense which the reader has incurred can be accepted by the Construction Plant- hire Association. The reader should obtain independent legal advice on any issue reported within the Bulletin, before proceeding with a course of action. www.cpa.uk.net CPA Bulletin > May 2018 47 A customer hired two excavators from us under the CPA Model Conditions. One excavator was supplied with an operator, and the other was on a self-drive basis. Whilst traversing the excavator, our operator drove into another item of plant which had been parked up. The customer is asking for all operating records for the self-drive plant - which wasn’t involved in the incident -, and are refusing to accept any liability for the damage which arose. Can you advise? We are a new Member of the CPA, and we are looking to hire out machines on a self-drive basis to both businesses and home owners. Can you clarify which terms we should use? I don’t see the need to supply the customer with the operating records for the self-drive excavator, particularly as it wasn’t involved in the incident. You should speak to your customer seeking clarity on why they want this information. As you supplied both machines and operator under the CPA Model Conditions, then you need to refer your customer to clauses 8 and 13(b). Under clause 8 it states that any operator supplied must be competent for the machine they are operating. If the operator holds a valid CPCS card or equivalent, then this would establish their competence. So although your operator had an accident, it doesn’t make him incompetent. The clause goes on to state that the operator is under the direction and control of the operator and is deemed to be the customer’s employee for the duration of the hire period. This would make the customer liable for the operator’s actions. Under clause 13(b), the customer is liable for all loss and damage to the plant during the hire period, as well as any damage or loss to any third party’s property, which would include the parked-up item of plant. As the customer had hired the operator and excavators from you under the Model Conditions, he must to take responsibility for all claims of loss and damage that arise during the hire period Q&As: 2 a a a If you are hiring out to businesses, then you can use the CPA’s Model Conditions. This will apply whether the machine is supplied on a self-drive basis or if you supplied the machine with an operator. On those occasions when you are hiring out a machine to a home owner (a Consumer) on a self-drive basis, then you would use the CPA’s Consumer Conditions for Plant supplied without an Operator. If a situation arises and you are unsure which terms and conditions to use, then please contact the CPA. As I have been given a company car to use, my own personal car isn’t being used so I don’t believe I need to continue to insure it. Am I correct?