Elite Insurance Company Limited, current members of the Association of British Insurers (ABI) and, until today, party to the General Terms of Agreement (GTA) within the Motor Insurance sector, has withdrawn its subscription to the agreement forthwith.
The GTA formalises arrangements between subscribing insurers and credit hire organisations (CHOs) for the provision of replacement vehicles to innocent third parties, notably the Credit Hire Protocol, and is a voluntary, non-binding arrangement.
As part of a general ongoing review into all arrangements with third party service providers, Elite has decided to withdraw from this arrangement with immediate effect.
Elite CEO, Jason Smart, said, “The fees being charged by CHOs and those agreed within this arrangement are excessive and unreasonable. The cost benefit of using this arrangement going forward is commercially unviable.”