Chief executive blames ‘excessive and unreasonable’ fees for withdrawal
Gibraltar-based insurer Elite has withdrawn from the ABI’s General Terms of Agreement (GTA) between motor insurers and credit hire firms over ‘excessive and unreasonable’ fees.
The insurer remains an ABI member.
Elite chief executive Jason Smart (pictured) 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.”
The GTA covers the provision of replacement credit hire vehicles to not-at-fault drivers following a claim and is a voluntary, non-binding agreement.
The move by Elite follows a trend towards insurers and credit hire organisations (CHOs) striking bilateral agreements.
Elite said it had withdrawn from the GTA as part of a review of all arrangements with third party service providers.
Elite is the latest company to eschew the GTA. In July credit hire firm Helphire pulled out of the agreement.