Diesel classification change could invalidate insurance

Chris Tindall
June 27, 2016

Insurance companies have added their voice to warnings that a classification change to diesel could result in invalidating insurance claims made by operators unaware of their obligations.

Diesel is now classed as a flammable substance (in law) and its storage and handling now falls within scope of the Dangerous Substances and Explosive Atmosphere Regulations.

However, fuel firm Merridale has warned that many companies that store the fuel on their premises could be unaware of the change and therefore not complying with the new standards.

Towergate Insurance said the introduction of legislation ensures companies follow best and safe practices and this is often noted by an insurer when deciding whether to insure a trade or business.

However, Larry Smith, regional MD at Towergate Insurance’s motor division, said: “The legislation that businesses must comply with is constantly being amended and it is difficult to keep track. Failure to comply with the law could affect the validity of insurance policies, so it is vital that they keep up to date with the latest requirements.”

The Association of British Insurers said its members expect customers to be aware of and comply with, the relevant legal requirements and a spokesman said: “Failure to do so could affect a claim, depending on the circumstances and policy terms and conditions.”

  • This story originally appeared in the 23 June issue of Commercial Motor. Why not subscribe and get 12 issues for just £12?

About the Author


Chris Tindall

Chris Tindall started writing for the haulage and logistics industry in 2002 and quickly realised there was enough going on to keep him busy for a very long time. He’s covered a broad range of significant issues, including GPS jamming by criminals, platooning, Brexit and the impact of the Covid-19 pandemic, the lack of safe and secure lorry parks and he helped secure the release of a lorry driver in a Polish jail due to misuse of the European Arrest Warrant.

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