With “wear and tear” issues continuing to be an ongoing bone of
contention between lessor and lessee a new product has been
developed to alleviate the problem.
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Reassure plc has launched Lease Protect, an insurance cover
which provides cover to the insured against the cost of
rectification work required at lease end. Its aim is to eliminate
the need for finance, contract hire or leasing companies to be
concerned over an acceptable standard of return specification –
thus helping to achieve the asset’s full potential.
John McLean, Reassure’s director told Motor Finance that Lease
Protect is also designed for manufacturers and discussions are
currently under way to implement the cover with “two major motor
manufacturers” on a mandatory basis for all their leased
vehicles.
McLean explained that the cover, which has been developed in
conjunction with Lloyd’s of London brokers and underwriters, and
which has FSA approval, can ideally be included at the point of
sale in a similar way to finance, PPI and GAP insurance products:
“In this way it provides the finance company, lessor or motor
dealer with an additional profit opportunity. It also serves to
ensure continuity of business relationships and enhances residual
values. It fixes the cost of rectification up to three years in
advance and enables a faster realisation of residual vehicle value
at lease end.”
McLean explained that two months prior to the end of a lease or
finance contract Reassure staff notify the lender of the due date
of return and the intended delivery location for rectification.
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By GlobalData“The authorised repair agent will conduct an initial assessment
and provide Reassure with an estimate for the repairs,” he said.
“If the repairs are within the agreed limits of authority, the
repair agent will carry out the rectification work. Should the
estimate exceed the repair agent’s limit of authority, further
inspection of the vehicle will be carried out by Reassure.
Subsequently, vehicle repairs are signed off and the vehicle made
available for collection.”
