In-vehicle CCTV specialist, Vision Track is calling for the Government to waive the Insurance Premium Tax (IPT) for fleets adopting accident-reducing camera telematics technology.
This comes after a similar plea from the British Insurance Brokers’ Association (BIBA) last week for telematics insurance products aimed at young drivers to be exempt from the duty*, which now stands at 10%. Research from its members showed a 40% drop in incident risks among new drivers who use telematics so the trade body is keen to incentivise the take-up of such technology.
Simon Marsh (Pictured) VisionTrack’s Managing Director, maintains that there is justification for similar products targeting transport operators to be afforded the same exemption.
“Transport businesses and fleets contribute significantly to our economy, but have been hit hard by two IPT hikes in the last 12 months, resulting in rising premiums,” said Simon. “Those looking to invest in vehicle telematics and cameras may have been put off or have been unable to finance such solutions as a result of increasing costs, yet this technology is a real driving force in the campaign to improve road safety. Fleets that use these devices should be rewarded for taking proactive steps to help save lives and cut incident rates, in turn saving the Government and taxpayers’ money and ensuring fleets keep moving.”
Road incidents cost millions of pounds, with each fatality alone totalling over £1 million**. Damage, lost outputs and road closures along with medical, fire service and policing all contribute to these sizeable sums.
“If fleet operators and young drivers are incentivised to introduce road safety-led products that improve driver behaviours, there is the potential for these figures to be reduced over time,” commented Simon.
While BIBA has concentrated on telematics, Simon also insists that vehicle camera technology needs to be included in any proposed tax exemptions. He said: “Instant visual footage of any incident can provide valuable information about what happened, which ultimately benefits all parties involved.”