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Diesel regulations could invalidate insurance claims

Diesel regulations could invalidate insurance claims

Diesel regulations could invalidate insurance claims A change to the way diesel fuel is classified could leave many businesses with equipment not up to standard, with an increase in invalid insurance claims possible.

Commercial Motor has reported insurance companies, as well as fuel producers, have warned the new way diesel fuel is classified could leave many businesses non-compliant with new standards, leading to insurance claims being invalidated.

A recent change to the Classification, Labelling and Packaging regulations has raised the flashpoint of what is considered to be a flammable substance from 55 to 60 degrees. This now applies to diesel fuel, so it now falls under the Dangerous Substances and Explosive Atmospheres Regulations.

The reclassification has meant businesses storing diesel themselves might not be meeting the new requirements that accompany the reclassification and this could be grounds to reject an insurance claim.

Speaking to Commercial Motor, the regional MD at Towergate Insurance’s motor division said failure to comply with the law could affect the validity of insurance policies, and it is vital businesses keep up to date with the requirements.

The Association of British Insurers has also warned failure to comply with legal requirements could affect a claim.

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