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Solution for Road Traffic Act - Extended Cover for Rallies
The new arrangements are vital for motorsport competitors involved in
disciplines that use public highways, such as stage and navigational
rallies. The alternative faced by large sectors of the sport would have been
for competitors to buy extended motor insurance policies for their vehicles,
rather than being covered under the Alexander Forbes` scheme.

The potential problem arose from recent amendments to the Road Traffic Act,
made following an EU directive, which resulted in the RTA applying in any
`public place`, whereas before it applied `on the public highway`. This
revision to the act has fundamentally changed the risk from insurers`

The new arrangement works on the same basis as before with a declaration
made when competitors sign on, if they wish to take advantage of the scheme.
One key aspect of the scheme is that it is intended to be a long term
solution to the issue of cover on such events, rather than a stop-gap

Providing an added benefit to the sport, Alexander Forbes is passing on its
increased revenue from the new scheme to the Motorsport Safety Fund. As a
broker, Alexander Forbes generates income from its commission on premiums
and although these have risen by 50% in this case, it has not created a
similar increase in work for the company. It has therefore decided to
restrict its earnings to the same level as under the previous scheme and
donate the surplus to the fund.

Release MSA 03/08: 17 May, 2003

For more information: Deborah Tee or Tim Bampton at MPA Media Limited,
Imperial House, Imperial Road, London SW6 2AG. Telephone: 020 7384 8700;
e-mail: or